• We don't do that (setting policy based on one data point)
  • Inflation has picked up a little bit
  • But it could just be that monetary policy is taking longer to feed through to the services sector
  • The right policy response to that, clearly, would be to hold your nerve
  • We're coming down in a slightly bumpy way, but we are coming down (on inflation)

His is saying that the RBA should not produce a kneejerk reaction to the latest inflation data. That means they will still keep things in view for August. But if we get more stubborn price numbers especially in the Q2 CPI report on 31 July, that might change up the picture again.