RBA Minutes

A quick look at the minutes suggests to me that they were pretty firm in the belief that the last three rate hikes were necessary to get them to a position where they could more comfortably asses their next move. I still believe there is a good chance they will pause briefly now but concede they may lift the rate to 4.25% before pausing. I've included a link to the statement and have pasted their final paragraph below.

RBA Minutes from Dec 1 2009

Concluding paragraph:

Members saw the arguments as finely balanced, but concluded that the stance of monetary policy would best reflect the circumstances facing the economy over the period ahead if there were an increase in the cash rate of 25 basis points at this meeting. Members saw this adjustment, together with those in the preceding two meetings, as materially shifting the stance of policy to a less accommodative setting and, therefore, as increasing the flexibility available to the Board at future meetings.