Economic Buzz: RBA minutes flags further tightening risks as energy costs fuel inflation

The Reserve Bank of Australia?s (RBA) September meeting minutes revealed heightened concerns over persistent inflation, following its unanimous 25-basis-point rate hike to 4.60%, the fourth increase this year and the highest cash rate since 2011. Policymakers cited elevated global energy prices, stronger-than-expected inflation, domestic capacity constraints and rising technology costs as key risks, warning that further tightening may be required to prevent inflation from becoming entrenched. While economic growth remained slightly stronger than expected in the second quarter, easing consumer spending and softer labour market conditions highlighted growing pressure on domestic demand.

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