The post RBA Minutes show a material shift in inflation risks behind February rate hike appeared on BitcoinEthereumNews.com.

The Reserve Bank of Australia (RBA) published the Minutes of its February monetary policy meeting this Tuesday, which showed that the rate hike was driven by stronger-than-expected data, persistent broad-based inflation, and easing financial conditions. Furthermore, policymakers emphasised data dependence and no preset rate path. Additional takeaways The board judged risks to inflation and employment had “shifted materially”, strengthening the case for a February hike. Members agreed inflation would likely stay above target too long without a policy response. Cash rate lifted 25bp to 3.85%; holding was considered, but hike deemed stronger option. No preset path for rates; future decisions are explicitly data dependent. Demand exceeding supply, labour market still tight, financial conditions seen as having eased. Market reaction The AUD/USD pair moves little following the release and currently trades around the 0.7070-0.7065 region, down just over 0.10% for the day. RBA FAQs The Reserve Bank of Australia (RBA) sets interest rates and manages monetary policy for Australia. Decisions are made by a board of governors at 11 meetings a year and ad hoc emergency meetings as required. The RBA’s primary mandate is to maintain price stability, which means an inflation rate of 2-3%, but also “..to contribute to the stability of the currency, full employment, and the economic prosperity and welfare of the Australian people.” Its main tool for achieving this is by raising or lowering interest rates. Relatively high interest rates will strengthen the Australian Dollar (AUD) and vice versa. Other RBA tools include quantitative easing and tightening. While inflation had always traditionally been thought of as a negative factor for currencies since it lowers the value of money in general, the opposite has actually been the case in modern times with the relaxation of cross-border capital controls. Moderately higher inflation now tends to lead central banks to…

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Filed under: News - @ February 17, 2026 1:24 am