Australia’s Central Bank Remains Jittery About Inflation Risks, Global Uncertainty

SYDNEY—The Reserve Bank of Australia remains jittery about the risks of higher inflation and will have little tolerance for any data that point to further delays in taming price pressures, according to the minutes of its latest policy meeting.

“Given the already lengthy period in which inflation had been above (2% to 3%) target, the board will have minimal tolerance to accommodate a more prolonged period of high inflation, even if this occurred because of factors that constrained the economy’s supply capacity,” minutes of the meeting held on Nov. 4-5 said.

The RBA left the official cash rate at 4.35% at the meeting, completing a full year since policy settings were last changed.

Economists remain confident that the RBA will start to cut interest rates in the first half of next year, but money markets are far less optimistic, with recent swap market pricing suggesting the RBA could be delayed until August.

To be sure, the minutes suggested the RBA is in no rush to cut the OCR, given numerous warnings about stubborn inflation pressures and a comment that the board will need to see more than one good quarterly inflation outcome to be confident that a fall in inflation was sustainable.

Inflation remained above the target band in the third quarter, with policymakers concerned that core inflation readings remain stubbornly high, while price pressures in the services sector of the economy remain sticky.

“Members observed that underlying inflation…remained too high and that staff forecasts did not see inflation returning to target until 2026,” the minutes said.

The RBA said it isn’t ruling anything in or out in terms of policy decisions, implying that under the right conditions, an interest rate increase might still be needed.

The minutes showed the policy-setting board explored several scenarios that might see it raise or lower the OCR.

The RBA was among the last of the major central banks to start raising interest rates following the global spike in inflation at the end of the Covid-19 pandemic, while also not tightening as far as its peers over ensuing years.

Global events might yet determine the outlook for interest rates. The minutes cited a number of growing international risks including uncertainty about the policy direction of the Trump White House, the size and composition of stimulus to support China’s economy, and the potential for unsustainable growth in global government debt.

“It was not yet possible to factor in events such as these, given pertinent details were unknown and still largely unpredictable,” the minutes said.

Bhutan has become the first country in the world to implement a national-level cryptocurrency payment system for tourism, marking a major milestone in digital innovation and travel.

Launched in partnership with Binance Pay and Bhutan’s fully digital DK Bank, the system enables travellers with Binance accounts to enjoy a seamless, end-to-end crypto-powered journey. More than 100 local merchants, from hotels and tour operators to small roadside vendors in remote villages, are already live on the system.

“This is more than a payment solution — it’s a commitment to innovation, inclusion, and convenience,” said Damcho Rinzin, Director of the Department of Tourism, Bhutan.

“It enables a seamless experience for travellers and empowers even small vendors in remote villages to participate in the tourism economy.”

Using supported cryptocurrencies, tourists can now pay for nearly every part of their trip, including airline tickets, visas, the Sustainable Development Fee (SDF), hotel stays, monument entry fees, local guides, and shopping, all through secure static and dynamic QR code payments.

Binance CEO Richard Teng praised the move, saying: “We are excited to partner with Bhutan as we are not only advancing the use of cryptocurrencies in travel but also setting a precedent for how technology can bridge cultures and economies. This initiative exemplifies our commitment to innovation and our belief in a future where digital finance empowers global connectivity and enriches travel experiences.”

Known as the “Kingdom of Happiness,” Bhutan has long prioritised Gross National Happiness over GDP, with a strong focus on sustainability, cultural preservation, and societal well-being. The new system aligns with these values by reducing payment friction and bringing financial inclusion to local communities.

Among the key features of the system:

Seamless Experience: Tourists can pay with crypto for all travel-related expenses.
Inclusive Reach: Small vendors, even in remote areas, can accept QR code payments.
Lower Fees: Transactions cost significantly less than traditional payment methods.
Comprehensive Support: More than 100 cryptocurrencies supported, including BNB, BTC, and USDC.
Secure and Instant: Real-time confirmations, 2FA, and encrypted transactions via the Binance app.

Behind the local settlement mechanism is DK Bank, Bhutan’s first fully digital bank. Licensed by the Royal Monetary Authority of Bhutan, it aims to deliver accessible financial services to all, including marginalised and unbanked communities.

The launch is being hailed as a bold step forward in integrating digital finance with global tourism — one that could set the benchmark for other nations looking to modernise the travel experience while empowering their local economies.

Australia’s Central Bank Remains Jittery About Inflation Risks, Global Uncertainty

Minutes suggested the central bank is in no rush to cut the official cash rate

Bhutan is pioneering a new frontier in travel by allowing tourists to pay for flights, visas, hotels and even fruit stalls using cryptocurrency via Binance Pay.