The RBA resumed discussion of raising interest rates at its May policy meeting, but later decided to keep rates unchanged for better reasons because of its commitment to avoid "excessive fine-tuning" of policy.

The minutes of the RBA meeting from May 6 to 7 show that the board of directors is keeping the key interest rate at 4.Wheeloffortunelive.35% discussed two options and pointed out that although the pre-meeting data were stronger than expected, the risks of its economic forecasts were still "balanced".

Belinda Allen, an economist at the Commonwealth Bank of Australia, said the board "seems to be focused on examining 'short-term changes in inflation to avoid excessive fine-tuning'. As a result, the obstacle to raising interest rates again seems high. Instead, the risk is that the easing cycle starts later than our basic forecast in November.

The minutes reinforce the widely held view that interest rates will remain high for a longer time. Swap traders now believe that the RBA will leave interest rates unchanged until mid-2025.

The RBA also raised its short-term inflation forecast, and consumer prices are expected to rise from 3% in the first three months of this year.Wheeloffortunelive.6% returned to the 2-3% target at the end of 2025. The updated outlook uses a technical assumption that interest rates will not change until mid-2025.

"members agreed that it was important to convey the latest data and itsWheeloffortuneliveHis message shows that the risk of inflation has increased, "according to Tuesday's announcement." it is difficult to predict or rule out the possibility of adjusting the future cash rate target. "

In addition, the minutes show that the rate-setting committee has a "limited tolerance" for inflation to return to target levels after 2026. ANZ's Adam Boyton said this meant the RBA board might be prepared to withstand higher-than-target consumer prices for longer than previously expected.

"We still believe that the economy is weakening enough to meet the inflation target, so we maintain our view that the next step in cash rates is to cut," Boyton said. He expects a mild cycle of three interest rate cuts starting in November.

RBA President Bullock has previously said that the Fed does not need to wait for inflation to enter the range before cutting interest rates. Even so, she has repeatedly refuted speculation about recent easing, reflecting the RBA's forecast that inflation will only return to target levels by the end of next year.

Recent data show that Australia's economy is generally slowing, GDP per capita is shrinking, while tepid retail sales reflect pessimistic household sentiment.

Consumer confidence fell slightly this month on fears that persistent inflation would prompt the RBA to raise interest rates again, according to a private report released earlier Tuesday.

At the same time, the labour market remains flexible, giving policymakers optimism that they can achieve a soft landing-reducing inflation while maintaining huge job growth in recent years.

Finally, the minutes show that an increase in cash interest rates may be appropriate if the board forms a view that judgments that support staff forecasts may be too optimistic about the power to curb inflation.WheeloffortuneliveIf consumer spending grows faster, labour market results remain benign, real household disposable income recovers, household balance sheets remain relatively strong, and further growth in public demand and business investment may delay the return of inflation to target levels; if trend productivity growth is weaker than assumed.