According to Jinshi, the minutes of the Reserve Bank of Australia's meeting showed that there was more reason to keep interest rates at a 12-year high in June, as recent data was not enough to change its long-standing assessment that inflation will return to target levels before 2026.
In discussing the possibility of further rate hikes, RBA board members noted that domestic demand had held up better than expected. An improving global economic outlook could also support Australia's export-oriented economy, while recent data did suggest there were "some upside risks" to the RBA's latest forecasts.
If members judge that aggregate supply is likely to be tighter than previously assumed, the case for an increase in the cash rate could be further strengthened.