RBA: Committed to doing what is necessary to ensure inflation returns to target over time

It also increased the interest rate on exchange settlement balances from zero percent to 25 basis points.

Committed to doing what is necessary to ensure that inflation in Australia returns to target over time.

Board judged that now was the right time to begin withdrawing some of the extraordinary monetary support.

This will require a further lift in interest rates over the period ahead.

Board will continue to closely monitor the incoming information and evolving balance of risks as it determines the timing and extent of future interest rate increases.

Economy has proven to be resilient and inflation has picked up more quickly, and to a higher level, than was expected.

 Media and markets briefing, including a question-and-answer session, will be held at 4pm.

Withdrawal of the extraordinary monetary support provided through the pandemic is appropriate.

Further rise in inflation is expected in the near term, but as supply-side disruptions are resolved, inflation is expected to decline back towards the target range of 2 to 3 per cent.

Board is not currently planning to sell the government bonds that the bank purchased during the pandemic.

Bank's business liaison suggests that wages growth has been picking up.

Board does not plan to reinvest the proceeds of maturing government bonds.