The Reserve Bank board has plenty of reasons to hike interest rates further, and members will be gunning for a convincing cool-off in inflation numbers to keep the cash rate on hold longer term.
The minutes from the April interest rate decision confirm it was a close race between another 25 basis point increase and a pause, with the board ultimately holding fire after 10 consecutive hikes to give the 350 basis points of increases a chance to wash through.
The board decided it was worth waiting for key data sources that would paint a clearer picture of the health of the economy, including the quarterly inflation data – due next Wednesday – and employment data, which has since come in hotter than expected….