The Reserve Bank of Australia's May board meeting produced an 8-1 vote in favour of raising the cash rate to 4.35%, with the minutes revealing a board increasingly alarmed by the risk that prolonged energy-driven inflation could cause longer-term price expectations to slip their moorings. Released on Tuesday, the minutes of the May meeting show the board weighed two options: holding the cash rate steady at 4.10% or raising by 25 basis points to fully reverse the policy easing undertaken in 2025. The majority concluded that 4.10% was no longer sufficient to offset the inflation risks accumulating from the Middle East ... (full story)