The Reserve Bank has delivered its 10th consecutive interest rate increase, lifting the cash rate by 0.25 of a percentage point to a decade-high 3.6 per cent.
The move was in line with economist and market expectations.
Heading into the meeting, markets were pricing a peak cash rate of 4.15 per cent by October.
The monthly CPI indicator suggests that inflation has peaked in Australia. Goods price inflation is expected to moderate over the months ahead due to both global developments and softer demand in Australia. Services price inflation remains high, with strong demand for some services over the summer. Rents are increasing at the fastest rate in some years, with vacancy rates low in many parts of the country. The central forecast is for inflation to decline this year and next, to be around 3 per cent in mid-2025. Medium-term inflation expectations remain well anchored, and it is important that this remains the case.