RBA contemplated raising rates at October meeting

The news: The Reserve Bank considered hiking interest rates at its October meeting, minutes reveal, as board members noted high inflation remains the biggest challenge to Australia's economy.

The numbers: The RBA held the cash rate steady at 4.10% this month. Rates have been increased by 4 percentage points since May 2022 and have been on hold since the RBA's June meeting. Australian annual CPI was 6% in the year to the June quarter, well above the RBA's 2%-3% target, but easing from the 7.8% peak in December 2022.

The context: Rising house prices and services price growth have been contributing to sticky inflation, which remains well above target. However, given the potential for slow economic growth in China constraining Australian output, coupled with the delayed effects of rate hikes, the RBA determined the case for a rate hold was stronger.

What they said: "In reaching their decision, members noted that some further tightening of policy may be required should inflation prove more persistent than expected," the RBA minutes read.