RBA: Some further tightening of monetary policy may be required

Board remains resolute in its determination to return inflation to target.

Some further tightening of monetary policy may be required.

The path to achieving a soft landing remains a narrow one.

Inflation in australia has passed its peak, but at 7 per cent is still too high and it will be some time yet before it is back in the target range.

Further increase in interest rates is to provide greater confidence that inflation will return to target within a reasonable timeframe.

Higher interest rates and cost-of-living pressures is leading to a substantial slowing in household spending.

Upside risks to the inflation outlook have increased and the board has responded to this.

At the aggregate level, wages growth is still consistent with the inflation target, provided that productivity growth picks up.

Conditions in the labour market have eased, although they remain very tight.

Board remains alert to the risk that expectations of ongoing high inflation contribute to larger increases in both prices and wages.

Growth in public sector wages is expected to pick up further and the annual increase in award wages was higher than it was last year.

At the aggregate level, wages growth is still consistent with the inflation target, provided that productivity growth picks up.

Firms report that labour shortages have eased.