The minutes of the Reserve Bank of Australia’s meeting two weeks ago and issued in the Asian session today, Tuesday, showed that the members of the Monetary Policy Committee of the Bank discussed global inflation developments, the ongoing turmoil in global supply chains and commodity price increases after Russia’s invasion of Ukraine, and the members also discussed the economic outlook in China after the restrictions of Corona recently.

Inflation in Australia rose to its highest level in years, and general inflation reached 2.1% in the first quarter and 5.1% over the year, as the increase in new fuel and housing prices constituted half of the increase in inflation, so that the Bank’s inflation expectations were adjusted higher compared to expectations three months ago.

Members considered three options for the amount of leverage in the meeting, at a rate of 15 basis points, 25 basis points, or 40 basis points, and the members agreed that a 15-point lift was not the preferred option, and that a 25-point lift was the preferred option at present.

The members concluded their discussion of expectations by referring to several sources of risks and uncertainty in the world and in Australia, housing prices may be one of the most important of these risks, as place prices are more sensitive to rising interest rates. basis point and will be raised by 25 points at the next June meeting, where members expect interest rates to reach 2% by the end of the year.

The Australian dollar rose by about 30 pips against the US dollar this morning and is trading at 0.7005 levels, rising for the third consecutive session.