- Board expects to increase interest rates further over the period ahead
- Need to ensure current period of higher inflation is only temporary
- Will be increasingly problematic to set a narrow range for inflation targets
- Policy is not on a pre-set path, could return to 50 bps moves or keep rates unchanged for a time
The fact that he is offering up a more flexible choice on the policy path is in itself a less aggressive (more dovish) take from the first half of the year at least. The RBA was among the first to pivot in that sense but the aussie still stands to benefit from any major rebound in risk trades should we finally get to the climax of the story i.e. the long-awaited Fed pivot.