There is much on the horizon to support household incomes, which may well prevent the slowdown the Reserve Bank expects.
The bank needs to be sure inflation will come down. This is not a time to be talking of easing policy.
Forget the interpretations of recession. We're still talking about a relatively stretched economy. There is no justification for the Reserve Bank to abandon the firm interest- rate outlook.
It's a real issue for the central bank when they are trying to keep the cash rate up, most of the forward pricing in the interest rate market tends to slip, and it's frustrating.
We think it's one of the best statements from the bank in a long time. It states the case pretty clearly. It's unequivocal.