"a finely balanced decision" - Reserve Bank almost left interest rates on hold a fortnight ago

It might not have exactly been a line-ball decision but the Reserve Bank board has today revealed it went to the brink of leaving official interest rates on hold a fortnight ago..

Instead the board opted for another hike to 4.1 percent on fears that inflation could become entrenched.

The minutes from the Board's most recent meeting ago reveal a "finely balanced decision" based on worries that not acting aggressively now could lead to heavy job losses down the track.

Here's my analysis from RBA headquarters at Sydney's Martin Place