The RBA has "some confidence inflationary pressures are declining", governor Michele Bullock says. Video by AAP
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00:00cash rate unchanged at 4.35 per cent. It's been at that level since November last year but because
00:07monetary policy operates with a lag we think we need to be careful, think carefully about where
00:12we're going. With inflation coming down and employment growing we think we remain on the
00:18narrow path. The board's been trying to bring inflation back to target in a reasonable time
00:24frame while preserving the gains in the labour market but underlying inflation currently remains
00:29too high and for some time now we've pointed out there are risks on both sides. Because persistent
00:36inflation is so bad for the economy we've been alert to the upside risks on inflation but we've
00:42also been conscious of the downside risks. Risks economic data have been mixed and some indicate
00:49a softening in line with our forecasts. This has given the board some confidence that inflationary
00:55pressures are declining but risks remain.