RBA: Board is committed to doing what is necessary to ensure inflation returns to target

Following are the key headlines from the September RBA monetary policy statement, via Reuters, as presented by Governor Phillip Lowe.

Board is committed to doing what is necessary to ensure inflation returns to target

Board is committed to returning inflation to the 2–3 per cent range over time. It is seeking to do this while keeping the economy on an even keel

Board expects to increase rates further over the months ahead

Board not on a pre-set path

Size and timing of future increases will be guided by the data and outlook for inflation and labour market

Inflation is expected to peak later this year and then decline back towards the  2–3  per cent range.

Medium-term inflation expectations remain well anchored

An important source of uncertainty continues to be the behaviour of household spending

Australian economy is continuing to grow solidly and national income is being boosted by a record level of the terms of trade

The full effects of higher interest rates yet to be felt in mortgage payments