Market Speak: RBA minutes signal readiness to hike rates if needed

The minutes of the Reserve Bank of Australia's June policy meeting showed policymakers remain prepared to raise interest rates if needed to restore price stability and support full employment. The board kept the cash rate unchanged at 4.35%, citing uncertainty surrounding developments in the Middle East, while noting inflation is expected to remain above target for an extended period. The board cited uncertainty surrounding the Middle East conflict, noting that while a lasting US-Iran resolution could ease inflationary pressures, higher fuel costs and elevated inflation are expected to persist. Members agreed monetary policy should remain restrictive as inflation stays above target and is not projected to return sustainably to target for another two years.

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