The Board wants to see labour market conditions that are consistent with inflation being sustainably in the 2 to 3 per cent target range. And it will not increase the cash rate until actual inflation is sustainably in the target range.
[3] This forward guidance has contributed to interest rates being lower than otherwise, as rates across the economy depend, among other things, on expectations of future cash rates. This effect is being reinforced by the Bank's three-year yield target.