The Reserve Bank of Australia (RBA) is no longer reiterating its willingness “to be patient,” a line that previously replaced its guidance that the cash rate would not rise before 2024, meaning an interest rate hike may be on the horizon.
In the RBA board minutes for April, it was noted that both inflation and wages growth had picked up. Inflation was expected to further increase, while wages growth in aggregate terms was still below target levels.
“These developments have brought forward the likely timing of the first increase in interest rates. Over coming months, important additional evidence will be available on both inflation and the evolution of labour costs,” the board said.
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