Reserve Bank of Australia (RBA) Governor Philip Lowe said on Tuesday that peak in inflation is "now behind us" but that it will be "some time yet" before it reaches the target range of 2% to 3%. He reaffirmed that the RBA's main objective is to get inflation down to target "within a reasonable timeframe."
"We are taking a bit more time than some other countries, on the basis that doing so can preserve some of the gains in the labour market. But there is a limit here. If we take too long to get inflation back to target, expectations will adjust and life will become more difficult. Today’s further adjustment in interest rates will help with the return of inflation to target in a reasonable period," Lowe said, commenting on the RBA's decision to hike interest rates by 25 basis points. He added that "some further tightening of monetary policy may be required," depending on how the economy and inflation evolve.