RBA minutes: Eight of nine members backed May hike as inflation expectations risk grew

I have been asked by the Emir of Qatar, Tamim bin Hamad Al Thani, the Crown Prince of Saudi Arabia, Mohammed bin Salman Al Saud, and the President of the United Arab Emirates, Mohamed bin Zayed Al Nahyan, to hold off on our planned Military attack of the Islamic Republic of Iran, which was scheduled for tomorrow, in that serious negotiations are now taking place, and that, in their opinion, as Great Leaders and Allies, a Deal will be made, which will be very acceptable to the United States of America, as well as all Countries in the Middle East, and beyond. This Deal will include, importantly, NO NUCLEAR WEAPONS FOR IRAN! Based on my respect for the above mentioned Leaders, I have instructed Secretary of War, Pete Hegseth, The Chairman of The Joint Chiefs of Staff, General Daniel Caine, and The United States Military, that we will NOT be doing the scheduled attack of Iran tomorrow, but have further instructed them to be prepared to go forward with a full, large scale assault of Iran, on a moment’s notice, in the event that an acceptable Deal is not reached. Thank you for your attention to this matter! President DONALD J. TRUMP TRUMP HALTS IRAN STRIKE — FOR NOW “President Trump says he has postponed a planned U.S. military strike on Iran after requests from Qatar’s Emir Tamim bin Hamad Al Thani, Saudi Crown Prince Mohammed bin Salman, and UAE President Mohamed bin Zayed. According to Trump,…

Members commenced their deliberations by discussing the impact of the conflict in the Middle East on global financial conditions. While riskier asset prices had moved in response to the conflict and the resultant increases in oil prices, the net change since the onset of the conflict had been modest. Global equity prices had rebounded from an initial decline, supported by the announcement of a ceasefire and material upgrades to forecast earnings in some sectors, including semiconductors. Corporate bond spreads in advanced economies had retraced the rise observed immediately after the onset of the conflict and remained low relative to history. Measures of expected equity price volatility had increased somewhat but remained well below the levels recorded during earlier episodes of heightened uncertainty, including the announcement of higher US tariffs in April 2025. Members discussed the possibility that financial markets were under-pricing downside risks associated with the conflict, given the contrast between these moves and sharp declines in consumer and business confidence in many jurisdictions. They noted several possible explanations for this contrast, including: a possible expectation among market participants that the conflict would be resolved reasonably quickly; the demonstrated resilience of the global economy in preceding years to a range of significant shocks; the long-run decline in the oil intensity of global output (which is currently around half the level of the early 1990s); and ongoing optimism about the impact of the AI boom on corporate earnings in future. The impact of the conflict on inter Reserve Bank of Australia minutes indicate most members supported a strong case for raising rates, with one member favouring a pause for further information. Reserve Bank of Australia: growth in the Australian economy is expected to stay below trend for an extended period.

Iran's Mehr news agency: Explosions were heard in Qeshm Island, cause unknown. An explosion was heard in Qeshm Island, Iran's Mehr news agency reports. The nature of the explosion remains unclear. Yesterday, Iran said its air defenses engaged a "hostile drone" over the island in the Strait of Hormuz. QESHM EXPLOSIONS JUST PUT HORMUZ SHIPPING BACK ON EDGE Reports say multiple explosions were heard on Qeshm Island in southern Iran, a strategic site near the Strait of Hormuz with major port links and close access to vital oil shipping lanes. Earlier May alerts around… pic.twitter.com/ROkXscl40T EXPLOSIONS HEARD IN QESHM ISLAND DUE TO NEUTRALIZING OF UNEXPLODED MUNITION - TASNIM