In the event of a sustained increase in the unemployment rate and a lack of further progress towards the inflation objective, lower interest rates might be appropriate at some point. We have the flexibility to do this if needed. The Board will continue to assess the outlook carefully. It does not see a strong case for a nearterm change in the cash rate.
We are in the position of being able to maintain the current policy setting while we assess the shifts in the global economy and the strength of household spending. It has long been the Board's approach to avoid reacting to the high-frequency ebb and flow of news.