RBA Meeting Minutes: Assessing Inflation and Future Monetary Policy


  • The RBA chose to maintain its cash rate at 4.1% during its July meeting, following a recent rate hike.
  • While Australia’s monthly CPI indicator showed a decline, inflation remains relatively high at 7.0% in Q1 of 2023.
  • The AUD/USD pair has displayed upward momentum, surpassing key moving averages and experiencing a pivot point bounce.

The Reserve Bank of Australia (RBA) is set to release its meeting minutes, which took place in July, during the Asia-Pacific market open. In this meeting, the RBA decided to keep its cash rate unchanged at 4.1%, following a previous 25-basis point increase. The decision to maintain the rate was driven by the need to assess the impact of previous rate adjustments. Inflation in Australia has shown signs of peaking, with the Consumer Price Index (CPI) indicating a decline of 5.6% in May. However, inflation remains relatively high at 7.0% in Q1 of 2023, and the RBA hinted at the possibility of further monetary tightening in the future to bring it within the target range of 2 to 3%.

The RBA emphasized its commitment to closely monitor global economic developments, household spending trends, and inflation forecasts to inform its policy decisions. By doing so, the central bank aims to respond effectively to changing economic conditions and maintain price stability. Additionally, the RBA kept the interest rate on Exchange Settlement balances steady at 4.0%, indicating its focus on managing liquidity in the financial system.


The AUD/USD pair has shown an upward trajectory throughout July, surpassing key moving averages and experiencing a pivot point bounce. This indicates the potential for further upward movement. The upcoming meeting minutes will be crucial in determining the future direction of the Australian dollar. Given the RBA’s struggle to meet its inflation target and its decision to continue raising rates, the Aussie dollar is expected to maintain its upward momentum and gain strength in the coming period. Market participants will also closely monitor the developments surrounding the Russian corridor grain deal, which could impact Australia’s position as the world’s second-largest wheat exporter and add complexity to the economic outlook for the Australian dollar.


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