Australian Dollar Firms Up On Hawkish RBA Minutes

Published on Oct 17, 2023 11:44

The Australian dollar firms up further against the dollar on Tuesday following minutes of the Reserve Bank of Australia that sited upside risk to inflation remained and voted to hold rates at higher levels if not raising. The case to hold the cash rate target unchanged at this meeting centred on the observation that interest rates had been increased significantly in a short period, and that the effects of tighter policy would not be fully evident in the data on economic activity and inflation for some months. However, members noted that some further tightening of policy may be required should inflation prove more persistent than expected. Members reaffirmed their determination to return inflation to target within a reasonable timeframe and their willingness to do what is necessary to achieve that outcome. The hawkish tone in RBA minutes led the currency climb to $0.6365, up 0.15% on the day.