Interest rates could rise again ‘should inflation prove more persistent than expected’, RBA suggests

The Reserve Bank weighed up the option of lifting rates earlier this month but determined ‘there had not been sufficient new information’

The prospect of another official interest rate increase will hinge on upcoming data on jobs and prices, with the Reserve Bank declaring it had “a low tolerance” should inflation not slow at the pace it has previously expected.

Minutes from the RBA’s 3 October meeting, released on Tuesday, show the board weighed up the option of leaving its key interest rate at 4.1% for a fourth straight month or lifting it by another 25 basis points to 4.35%.