Australia’s central bank says further rate increases likely

AUSTRALIA’S central bank felt further increases in interest rates would be needed when hiking for the first time in more than a decade earlier this month, and considered arguments for larger moves given a spike in inflation. Minutes of its May meeting released on Tuesday, showed the Reserve Bank of Australia’s (RBA) Board considered hiking by a sharper 40 basis points, but decided to move by 25 basis points to 0.35 per cent since this would mark a return to “normal operating procedures”. “Given that the Board meets monthly, it would have the opportunity to review the setting of interest rates again within a relatively short period of time, based on additional information,” the minutes showed. REUTERS