Minutes from the Reserve Bank’s September board meeting reveal that the Central Bank contemplated increasing the cash rate by 0.25 per cent this month.
The RBA board indicated that inflation remains excessively high in Australia and is anticipated to stay high for a prolonged duration.
The RBA highlighted that since June, oil prices have surged by almost 20 per cent, accompanied by even more significant hikes in refined fuel prices.
Analysts at JP Morgan predict that the escalating oil prices will compel the Reserve Bank to boost interest rates by 0.25 per cent in November.
Bond futures suggest there is a 68 per cent likelihood of the rate climbing to 4.35 per cent by May of the following year.