The Reserve Bank of Australia expects to lower its benchmark cash rate over the coming year, according to minutes from the board’s 5 August meeting released Tuesday. Directors judged that current forecasts keep the economy on track to meet full-employment and inflation goals but said additional easing is likely to be required to consolidate that progress. The board noted that a faster pace of rate reductions could be necessary if the labour market is already at equilibrium and inflation risks slipping below the midpoint of the 2%–3% target range. For now, members characterised the labour market as still "somewhat tight" and observed that inflation remains above the midpoint, while domestic demand is showing signs of recovery. Housing indicators were viewed as broadly consistent with previous easing cycles: house-price increases remain within historical bounds and home-building activity is beginning to improve. Staff projections point to continued momentum, but policymakers stressed that future decisions will be guided by incoming data. While a number of members expressed strong support for an immediate 25-basis-point cut, the board agreed to await further information before moving. It also decided that the current pace of reducing its government-bond holdings remains appropriate, rejecting a faster runoff for now.