The Reserve Bank of Australia stated in the minutes that the war in Ukraine was a major new source of uncertainty.
Key minutes
The board will not increase the cash rate until actual inflation is sustainably within the 2 to 3 percent target band.
While inflation had picked up, members agreed it was too early to conclude that it was sustainably within the target band.
Australian economy remained resilient and spending was expected to pick up further after the omicron outbreak.
The board is prepared to be patient as it monitors how the various factors affecting inflation in Australia evolve.
War in Ukraine and the associated increase in energy prices had created additional uncertainty about the inflation outlook.
There were uncertainties about how persistent pick-up in inflation would be given recent developments in global energy markets and ongoing supply-side problems.
Meanwhile, AUD/USD flirts with 0.7200 on RBA Minutes, China data, Ukraine eyed.
About the RBA minutes
The Reserve Bank of Australia (RBA) publishes the minutes of its monetary policy meeting two weeks after the interest rate decision is announced. It provides a detailed record of the discussions held between the RBA’s board members on monetary policy and economic conditions that influenced their decision on adjusting interest rates and/or bond buys, significantly impacting the AUD. The minutes also reveal considerations on international economic developments and the exchange rate value.
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.
If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.
FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.
The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.
Recommended content
Editors’ Picks
AUD/USD stays depressed below 0.6200, awaits US CPI for fresh impetus
AUD/USD struggles to capitalize on its recent recovery gains while trading in the red below 0.6200 as traders opt to wait for the US CPI data before placing fresh directional bets. In the meantime, markets remain cautious and help limit the US Dollar pullback from over a two-year peak.
USD/JPY holds steady near 158.00, as focus shifts to US CPI
USD/JPY oscillates in a range near 158.00 in the Asian session on Wednesday amid subdued US Dollar price action and ahead of the crucial US CPI report. The downside remains cushioned amid wavering BoJ rate hike expectations. Further, prospects for fewer Fed rate cuts favor the US Dollar, supporting the pair.
Gold price bulls seem reluctant near $2,675 ahead of US inflation data
Gold price returns to the red near $2,675 following the previous day's bounce from a one-week low even as the US Dollar and the US Treasury bond yields stay defensive. Moreover, expectations that the Fed will pause its rate-cutting cycle weigh on the non-yielding Gold price ahead of the key US CPI data.
Bitcoin could lose its diversification status as correlation with stocks increases
Bitcoin's rising correlation with the traditional stock market is gradually affecting its role as a portfolio diversifier. This trend has been visible following Bitcoin's similar reactions to the S&P 500 upon macroeconomic data releases.
Small business optimism shoots up in December
Small business sentiment continued to improve in December alongside greater economic and public policy certainty. The NFIB Small Business Optimism Index rose 3.4 points to 105.1, reaching its highest level since October 2018.
Best Forex Brokers with Low Spreads
VERIFIED Low spreads are crucial for reducing trading costs. Explore top Forex brokers offering competitive spreads and high leverage. Compare options for EUR/USD, GBP/USD, USD/JPY, and Gold.