RBA governor Philip Lowe says the nation’s economic recovery is on track thanks to its virtual zero interest rate policy.
“Recent inflation data indicates we’re making better than expected progress towards out inflation objective, but we still have a way to go,” he said.
“Underlying inflation has only just returned to the target range for the first time in six years and it’s only just above the bottom of that target range. In terms of the real economy the recovery is back in track after the interruption caused by Delta the recovery’s been underpinned by high rates of vaccination and expansionary policy settings.
“We’re expecting the recovery to continue and the unemployment rate to fall lower reaching 4 per cent at the end of 2023.”