The Australian dollar rose to a 12-week high against the yen on Tuesday after the RBA strengthened its bet that a rate cut is still some time away。

According to the minutes of the RBA's February policy meeting, the central bank needs more time to ensure inflation slows before it can rule out further rate hikes.。

RBA policymakers considered another 25 basis points hike but decided to keep borrowing costs stable as progress has been made on the inflation front, the minutes show.。

However, the minutes mentioned that policymakers "noted that it will take some time before they can have enough confidence that inflation will return to the target range within a reasonable period of time."。

The RBA expects inflation to return to the 2% -3% target range by the end of 2025 and decelerate further to the median of the range in 2026。

The market expects the RBA to cut interest rates by only 36 basis points this year.。Futures data suggests rate cuts may not happen until August or September。

According to media reports, National Australia Bank senior economist Taylor Nugent said: "We don't get much new information from the February minutes.。We expect the board to be cautious about the accommodative policy settings。By November, the combination of rising unemployment and inflation close to the target range should be enough to prompt the RBA to start acting。"

Meanwhile, Japan's economy unexpectedly fell into recession in the fourth quarter of 2023 due to weak consumption and capital spending.。This prompted market participants to reassess the likelihood of a near-term exit from the Bank of Japan's ultra-loose monetary policy.。

AUD / JPY up 0 as of 9: 51 GMT Tuesday.31% at 98.434。At one point in the day's trading, the forex pair rose to 98.440。This is the highest level for the pair since November 27, 2023 (98.494)。