As the economy strengthens and income growth and inflation lift, it would be natural for interest rates to return towards more normal levels. The timing of any future change in interest rates is dependent upon the speed of the progress that is made in reducing the unemployment rate and having inflation return to around the midpoint of the target range on a sustained basis.
If we were to make faster progress than we currently expect, any future increase in interest rates is likely to be earlier. Conversely, slower progress would likely see a longer period without an adjustment. For the time being, the Reserve Bank Board's judgement remains that the best course is to maintain the cash rate at its current level.