Minutes of the Monetary Policy Meeting of the Reserve Bank Board – 17 and 18 February 2025

The Reserve Bank of Australia (RBA) has published the minutes of its February monetary policy meeting, where the Board decided to reduce the cash rate target by 25 basis points to 4.10 per cent and to decrease the interest rate on Exchange Settlement balances by 25 basis points to 4.00 per cent.

The minutes highlight that although financial conditions remained restrictive overall, expectations for an early decline in the cash rate had contributed to some recent easing. Housing and business credit growth had increased further, wholesale funding conditions remained favourable and equity valuations were high. Members also noted that the apparent strength in credit growth was partly explained by nominal growth in the economy.