Economic Buzz: Inflation risks keep hike bias alive- RBA August Meeting Minutes

The Reserve Bank of Australia?s August meeting minutes showed the board unanimously held the cash rate at 4.35%, judging policy sufficiently restrictive for now. However, the minutes revealed a genuine debate over a 25-basis-point hike as inflation risks remained tilted to the upside. Underlying inflation stood at 3.6%, while stronger demand, higher oil prices and cost pass-through remained key concerns. The August meeting minutes also showed the RBA expects inflation to return to target only gradually by late 2027, keeping the prospect of future tightening alive.

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