If we are to stay on that path, Australians need to have confidence that inflation will come down and return to target. If people think inflation is going to remain high then, understandably, they will adjust their behaviour. Firms will be more willing to put up their prices and workers will seek larger pay rises.
a 0.5% fall in economic activity of the euro area, but this time, the risks to the projection are evenly balanced. Developments in the international environment will weigh primarily on demand for our export products and the inflow of foreign direct investments.