The final conclusion is that the cash rate will be maintained at 10 basis points for as long as is necessary (Graph 14). The Board has no appetite to go into negative territory and has done as much as it reasonably can with interest rates.
Before increasing the cash rate, the Board wants to see inflation sustainably within the 2 to 3 per cent target range. Meeting this condition will require a tighter labour market and stronger wages growth than we are currently forecasting.