Reserve Bank of Australia Will Raise Rates if Recovery Shows Clear Signs, Minutes Sho

At its August 6th meeting, the Reserve Bank of Australia starkly changed the tone of the language it used in setting expectations for further rate changes. It said that there was a possibility for the bank to raise rates, given that the economy shows substantial signs of improvement. Rate “movement towards a more normal setting of monetary policy could be expected at some point if further signs of a durable recovery emerge,” the minute said. At the previous meeting, the bank anchored expectations toward the downside, saying that “the Board’s current view is that the outlook for inflation allows some scope for further easing of monetary policy, if needed.”