Prior 4.35%Latest data does not change previous assessment that policy is restrictive and working broadly as anticipatedThe outlook remains highly uncertainInflation is still some way above the midpoint of the 2% to 3% target rangeReturning inflation to target is the priorityUnderlying inflation remains too highPolicy will need to be sufficiently restrictive until confidence returns that inflation is moving sustainably towards the target rangeRBA remains resolute in its determination to return inflation to target and will do what is necessary to achieve that outcomeThe most recent projections in the August SMP show that it will be some time yet before inflation is sustainably in the target rangeData since then have reinforced the need to remain vigilant to upside risks to inflationRBA is not ruling anything in or out on next policy stepsFull statement
This article was written by Justin Low at www.forexlive.com.
