Minutes of the June 7 board meeting showed that the Reserve Bank of Australia (RBA) discussed raising the bank rate from 0.35% by 25 basis points or 50 basis points and chose the latter option because inflation had already exceeded all expectations.
“Members noted that both options would leave the discount rate below 1%, which would still be very stimulating, and that further increases would be required,” the minutes read.
“Members also agreed that further steps should be taken to normalize monetary conditions in Australia in the coming months.”