But the rise in interest rates in Australia has helped to support the value of the Australian dollar and therefore the prices of imported goods and services are not as high as they otherwise would have been. In short, all of these other channels of monetary policy are helping to slow the growth of aggregate demand and bring down inflation.
The Bank will continue to closely monitor the transmission of monetary policy and its impact on household spending, the labour market and inflation. The Board will respond as necessary to bring inflation back to target in a reasonable time.