The RBA have just released their latest minutes, and as expected some hawkish comments were seen.
The RBA commented that the inflation pressure coming from the increase in investment that leads to a rise in the resources utilization, will probably need higher interest rates to ensure inflation remained consistent with the medium-term target.
"The central scenario remained for the Australian economy to grow at trend pace, or a bit above, over the next few years. This forecast incorporated quite a subdued outlook for the main G7 economies and around trend growth in Asia", the Reserve Bank of Australia said.
While the bank remains alert to risks such as weaker global growth, "members considered that if the central scenario came to pass it was likely that higher interest rates would be required, at some point, to ensure that inflation remained consistent with the medium-term target".