RBA Governor Bullock said rise in oil prices is not the reason for the rate increase and that inflation was already too high, adds risks to inflation are to the upside and cash rate was not high enough to bring inflation back to the target

• All members agreed inflation was too high, board agreed inflation was too high.
• Had a very robust meeting.
• Members that voted to hold, voted in a hawkish sense.
• Discussion was about timing, not the direction of policy and hike.
• Difference was timing and those who voted against, still felt the need for an eventual rate increase.
• Today's hike does not say anything about the forward path, and the forward path for rates is uncertain.

RBA Governor Bullock's remarks indicate a hawkish stance, emphasizing that the rise in oil prices isn't a primary driver behind the current inflation, which they deem too high. This underscores the central bank's intent to adjust monetary policy to combat inflation, suggesting future rate increases may be on the horizon despite uncertainty in timing, which could affect the AUD and fixed income markets as they reassess rate expectations.