Reserve Bank Minutes Suggest May Rate Hike on the Table

CANBERRA, AUSTRALIA - FEBRUARY 07: Reserve Bank Governor Philip Lowe looks on during the House of Representatives Economics Committee at Parliament House on February 07, 2020 in Canberra, Australia. The hearing is part of an accountability process for the Reserve Bank of Australia and provides a forecast for Australian Monetary Policy. The re-escalation of US-China disputes and the coronavirus are creating uncertainty in the economy. Photo by Tracey Nearmy/Getty Images

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.