RBA Minutes: Board judged the case for holding rates steady stronger than for hiking

Needed to be vigilant to upside risks to inflation, data suggested upside risk for May CPI.

Economic uncertainty meant it was difficult to rule in or out future changes in policy.

Recent data not sufficient to change outlook for inflation returning to target by 2026.

Judged still possible to bring inflation to target while keeping employment gains.

Board saw downside risks to the labor market, vacancy rates pointed to weakness.

Unemployment rate could rise quickly as it had done in the past.

Continued rapid rise in business insolvencies would be negative for jobs.

Wise to give little weight to upward revisions to household consumption.

Q1 GDP growth had been very weak, wage growth looked to have peaked.

Hike might be needed if board judged policy was not "sufficiently restrictive".

August forecast round would allow staff to carefully judge spare capacity in economy.

Judgements about spare capacity were very uncertain, should be treated with caution.

Inflation expectations still anchored, but market premia had drifted higher.

A material rise in inflation expectations could require significantly higher rates.