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      RBA March minutes show split over timing of further rate hikes

      Minutes from the Reserve Bank of Australia’s March meeting showed members agreed financial conditions needed to remain restrictive, but they were divided over whether to raise rates immediately. The board lifted the cash rate by 25 basis points in a 5-4 vote, with all members agreeing that further tightening would likely be needed at some stage.

      The minutes said policymakers were concerned that higher oil prices could keep inflation above target for longer. The bank judged that if oil stayed near US$100 a barrel, annual headline CPI could rise to about 5% in the June quarter, up from 3.7% in February.

      A majority of members wanted to act quickly, warning that a delay could allow the oil shock to affect inflation expectations and broader price-setting behaviour. They also said financial conditions were not yet restrictive enough and that labour market risks had eased. The minority preferred to wait, citing uncertainty about domestic demand, household spending and the labour market.

      © 2026 KLEA News. All Rights Reserved. This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.

      Source: KLEA News

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