RBA Minutes: Prepared to be patient until wage and inflation targets are met

The minutes of the November 2021 Monetary Policy Meeting of the Reserve Bank Board has been released where the central bank is repeating that they are prepared to be patient. 

The risks to the inflation forecast had changed.

QE continuation at the current pace seems appropriate and the cash rate to remain at its current level until 2024 or until wage and inflation criteria are met. 

AUD/USD stays bid 

The Aussie is was slightly offered on the release and then turned bid as investors wait for the head of the RBA, Phillip Lowe, to speak in an hours time. 

Markets, however, are not accepting the central bank's dovishness. Instead, rates are barely changed and the Aussie is higher in a sign that traders are bettering against the RBA and are expecting a rate hike as soon as next year. 

About the RBA minutes

The minutes of the Reserve Bank of Australia meetings are published two weeks after the interest rate decision. The minutes give a full account of the policy discussion, including differences of view.

They also record the votes of the individual members of the Committee. Generally speaking, if the RBA is hawkish about the inflationary outlook for the economy, then the markets see a higher possibility of a rate increase, and that is positive for the AUD.