In the minutes of March 1 meeting, RBA reiterated that it will not hike cash rate “until actual inflation is sustainably within the 2 to 3 per cent target band. Now, it was “too early to conclude that” inflation is “sustainably within the target band”.
There were “uncertainties about how persistent the pick-up in inflation”. Wage growth “remained modest”, and “it was likely to be some time before aggregate wages growth would be at a rate consistent with inflation being sustainably at target.”
Thus, RBA is “prepared to be patient” on lifting interest rate.
