The Reserve Bank will continue to monitor the cash market closely and is prepared to adjust arrangements if the situation requires. So these are the four measures announced earlier this afternoon. Together, they represent a comprehensive package to lower funding costs in Australia and support the supply of credit. Complementary initiatives by APRA and the AOFM are also working towards those same objectives.
Inflation is expected to remain close to 5% in the months ahead, but pressures should ease in the second half of 2022, and inflation should decline relatively quickly to around 3% by the end of the year. Further out, we expect inflation will gradually return close to the 2% target over 2023 and 2024.