Core inflation, which is often a reliable indicator of where inflation is headed over time, is quite close to 2 percent. Despite this favorable picture, we have seen some cross-currents in recent months.
These transactions may be either outright purchases or sales, or repurchase agreements which involve the sale of a security with an undertaking  1  For details of the Reserve Bank’s market operations see www.rba.gov.au/MarketOperations/. BIS Review 94/2007  1  to repurchase it at a future agreed date and at an agreed price.