Given this outlook, the Reserve Bank has been lowering the cash rate. We have chosen to do so quite quickly, well before a decline in inflation is evident in the data, in recognition that the international circumstances had changed quite sharply, which have increased the risk of a more abrupt slowing in demand.
the increasing digitalisation and its impact on how payments are made. Even though usage of cash for payments is still relatively high in Spain, Germany and other European countries, digitalisation will lead to a further decrease. Other countries in Europe have already experienced such a development.