The Reserve Bank of Australia (RBA) has released the minutes of its October 6 board meeting, revealing the decision to lift interest rates stemmed from concerns about inflation and “imbalances” in the economy.
The central bank lifted the cash rate to 3.25 percent after its monthly board meeting on Tuesday, October 6, from three percent, concluding that “the risks in waiting had increased” as the economic outlook improved.
‘‘Members concluded that, while downside risks to the domestic economy could not be ruled out, they had diminished significantly over recent months,’’ the minutes, published today, said.
‘‘This meant that the balance of risks was now such that the current very expansionary setting of policy was no longer necessary, and possibly imprudent.
‘‘The board therefore decided in favour of raising the cash rate.’’
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