The Reserve Bank of Australia's (RBA) board members maintained a cautious monetary policy approach after the latest decision to keep the interest rate unchanged, board member meeting minutes showed.

According to the bank, the overall financial conditions in the country remained restrictive. At the same time, board members acknowledged global economic risks resulting from the United States' trade policy and the impact of tariffs on developed economies. "Members observed that the implications of tariffs for inflation could further complicate the global economic outlook. Inflation was still above central banks’ targets in some advanced economies and progress on disinflation had stalled or even reversed a little in some cases," the minutes emphasized.

Furthermore, the bank cited market economists' assessments that US tariffs would likely lead to slower output growth and higher inflation.