The Reserve Bank of Australia (RBA) flagged concerns about further rate cuts, saying that inflation's return to the target is not yet guaranteed despite recent moderation, minutes from its February meeting showed Tuesday.

"[M]embers agreed that their decision at this meeting did not commit them to further reductions in the cash rate target at subsequent meetings," the RBA said.

The central bank lowered the cash rate target by 25 basis points to 4.10% at its Feb. 17 to 18 meeting, marking its first rate cut since November 2020. But analysts widely interpreted the RBA's decision as a "hawkish" move, particularly against the context of a strong labor market.

In its minutes, the RBA said while recent economic data gave members confidence in inflation's path, this was not guaranteed. It added that members "considered the risk that easing policy too soon could add to inflationary pressures."