Rate hikes could be on the horizon

The Reserve Board of Australia (RBA) released their meeting minutes this afternoon, with their discussion in June now igniting fears of an upcoming rate hike.

While the RBA did not explicitly say it is coming, it was recorded that,

“Members acknowledged that if inflation expectations were to rise materially from current levels, it could require significantly higher interest rates to bring inflation back to target, with adverse implications for growth in output and employment,” the minutes show.

This conversation is only days before the most recent inflation figures came out, with the ABS reporting that the monthly consumer price index had jumped to 4 per cent in the year to May, up from 3.6 per cent in April.

With the Board already in talks of an increase before this information, alarm bells are now ringing.