RBA Minutes: Board saw case for slower pace of increase in rates as becoming stronger

Inflation in Australia was at its highest level in several decades and was expected to increase further over the months ahead.

Board is committed to doing what is necessary to ensure that inflation in Australia returns to target over time.

Board was resolute in the need to ensure inflation returned to target, but mindful that the path to achieve this needed to account for the risks to growth and employment.

Inflation was expected to peak later this year and then decline back towards the 2 to 3 per cent target range.

Board is seeking to return inflation to target while keeping the economy on an even keel.

Labor market had remained tight and continued to indicate that the economy was having difficulty meeting the level of aggregate demand.

Board expects to increase interest rates further over the months ahead, but it is not on a pre-set path.

Discussed the arguments around raising interest rates by either 25 basis points or 50 basis points.

Medium-term inflation expectations remained well anchored.

Interest rates have increased quite quickly and were getting closer to normal settings.