RBA Assistant Governor Hunter says the Board will act as needed to ensure inflation returns to target and the labour market to sustainable full employment

Some economic costs are unavoidable; all policymakers can do is strike a balance. Monetary policy can potentially limit the indirect and second-round effects. Supply shocks do not lessen the importance of maintaining low and stable inflation. Not always correct to "look through" supply shocks. Oil shocks can potentially shift inflation expectations. May need a period of low inflation, higher unemployment if inflation expectations rise. There are few signs of a marked slowdown in activity. Large economic shocks can create uncertainty, reduce confidence, and constrain spending.