RBA Minutes: Policy Needed To Remain Restrictive To Unwind Excess Demand

Board Saw Merit In Using Scope From Previous Hikes To Assess Economy Leaving Rates Unchanged Best Balanced Inflation And Employment Objectives Economy Operating With Excess Demand And Widespread Inflationary Pressures Will Do What Is Needed To Achieve Price Stability, Including Raising Rates If Necessary Middle East Conflict Still Posed Material Upside Risks To Inflation And Downside Risks To Growth Board Agreed Financial Conditions Were Probably Somewhat Restrictive Sustained High Oil Prices Could Feed Through To Prices And Wage-Setting Behaviour Members Noted Risks Of A Material Weakening In The Housing Market Softening Housing Market And Slower Housing Credit Signalled Tighter Conditions Persistently Weak Productivity Could Impede Return Of Inflation To Target Recent Data Mixed But Suggested Economy Slowing Broadly As Expected Housing Market Weaker Than Expected Due To Rate Hikes And Tax Changes Discussed Whether Strong Data Centre Activity Could Exacerbate Capacity Pressures Household Spending Growth Had Not Softened Materially