RBA Minutes Highlight Tight Policy Debate

• Risk appetite improved overnight as headlines pointed to potential easing in Middle East tensions. Reports suggested President Trump may be willing to step back from the US military campaign, even if shipping through the Strait of Hormuz remains disrupted.
• Domestically, the minutes from the RBA’s March meeting confirmed the Board raised the cash rate to 4.10% in a narrow 5–4 vote. Governor Bullock later noted the split mainly reflected differences around timing, rather than the overall direction of policy.
• Those preferring to hold highlighted the uncertain global backdrop – particularly developments in the Middle East – arguing that waiting for clearer information could help guide the policy response.
• The discussion also reflected the difficult balance facing the Board, weighing slowing growth risks against potential inflation pressures linked to the conflict.
• Separately, private sector credit expanded slightly faster in February, increasing 0.6% over the month after 0.5% previously, with annual growth now at 7.8% the highest level seen in recent months.