Prep for 4.85pc: Shock RBA minutes reveal job loss warning

Reserve Bank Governor Michele Bullock addresses the media following the announcement that the RBA will increase interest rates to 4.6 per cent. Picture: NewsWire / Nikki Short Shock unsealed Reserve Bank minutes show board members are willing to accept job losses to crush inflation – exposing a stark gap with the Governor’s softer warnings as low rates disappear. Unsealed records from the RBA’s late September meeting – where the cash rate was unanimously hiked to 4.60 per cent – show a board prepared to inflict severe financial pain on households exposing the stern reality agreed to behind closed doors. Major banks are warning that the RBA board is more “hawkish” than they may think, meaning they have a strong willingness to raise rates now to cut inflation even if it means job losses. Source: Asanka Ratnayake/Getty Images. While the Governor publicly expressed “hope” that previous rate hikes would be enough, Commonwealth Bank head of Australian economics Belinda Allen flagged the unsealed minutes telling a completely different story. “Quite surprisingly, there was no mention of the lags to monetary policy, which was a key point made by the Governor as a reason to be more patient,”...