RBA: Size and timing of future interest rate increases will be guided by data

Board expects to take further steps in the process of normalising monetary conditions.

Inflation in Australia is also high, but not as high as it is in many other countries.

Board is committed to doing what is necessary to ensure that inflation returns to target over time.

Size and timing of future interest rate increases will be guided by data and assessment of the outlook for inflation and the labour market.

Strong demand, a tight labour market and capacity constraints in some sectors are contributing to the upward pressure on prices.

Inflation is forecast to peak later this year and then decline back towards the 2–3  percent range next year.

One source of ongoing uncertainty about the economic outlook is the behaviour of household spending.

Medium-term inflation expectations remain well anchored and it is important that this remains the case.

Recent spending data have been positive, although household budgets are under pressure from higher prices and higher interest rates.

Australian economy remains resilient and the labour market is tighter than it has been for some time.

Bank's business liaison program and business surveys continue to point to a lift in wages growth.