RBA Governor Philip Lowe reiterated in a speech that the Board expects to “interest rates further over the period ahead”, and interest rate is “not on a pre-set path”.
“We have not ruled out returning to 50 basis point increases if that is necessary,” he said. “Nor have we ruled out keeping rates unchanged for a time as we assess the state of the economy and the outlook for inflation.”
“As we take our decisions over coming meetings, we will be paying close attention to developments in the global economy, the evolution of household spending and wage and price setting behaviour.”
“Developments in each of these three areas will affect the pace at which inflation returns to target and whether the economy can remain on an even keel over the next couple of years.”
