The Reserve Bank of Australia (RBA) has affirmed its commitment to closely monitoring incoming data and the evolving economic outlook when formulating future monetary policy decisions. According to the minutes from this month’s meeting, the board will maintain a focused approach to achieving both price stability and full employment, taking necessary actions to meet these objectives. Board members stressed the importance of thoroughly assessing incoming data to refine their judgements.
The RBA stated that its current strategy of aiming to bring inflation back to the target range within a reasonable timeframe, while also safeguarding employment gains, remains appropriate. The central bank acknowledged that inflation had increased during the latter half of 2025 and is currently considered to be ‘too high’, confirming a risk previously identified in earlier meetings.
Concerns were raised among board members that recent developments suggest financial conditions might no longer be restrictive. This is despite increased market expectations for the cash rate and the corresponding appreciation of the Australian dollar. The RBA’s minutes indicate a vigilant stance, highlighting its dedication to navigating the complexities of the current economic landscape while pursuing its dual mandate.