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RBA Board Discussed 50 Bps & 25 Bps Rate Hikes, Minutes Show

By Renju Jaya   ✉  | Published:  | Google News Follow Us  | Join Us
rttnewslogo20mar2024

Reserve Bank of Australia policymakers discussed only two options for its interest rate decision in February, either a quarter point or a half percentage point hike, completely abandoning the option of leaving rates unchanged as there was a risk that inflation could persist at an uncomfortably high level, minutes of the session held on February 7, revealed Tuesday.

Arguments favoring a 50 basis point increase stemmed from the concern that prices and wages data are exceeding expectations and there is a risk that high inflation would be persistent.

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