Preview of the Reserve Bank of Australia December meeting minutes due today, December 23

The economic calendar in Asia on December 23 is almost void, with the only event being the release of the Reserve Bank of Australia's December meeting minutes. These minutes, due at 0030 GMT, are expected to reinforce the end of the easing cycle, indicating a cautious bias toward tightening policy. Signs of renewed inflation pressures, stemming from stronger private demand and housing momentum, are likely to be highlighted. Although the cash rate remains unchanged at 3.60%, the narrative suggests that further tightening could be considered if inflation does not convincingly slow down, especially in the upcoming February meeting. The commentary reflects on the labour market conditions being somewhat tight, alongside persistent upward risks to inflation. Therefore, market participants are watching closely as the minutes could signify a more aggressive stance on inflation than previously indicated.