The Reserve Bank of Australia (RBA) raised its cash rate to 3.75% today, as expected. The accompanying policy statement shows that the RBA considers it has already made a “material adjustment” to rates and expects GDP growth to accelerate to trend next year, whilst inflation should hit its target range. This suggests a wait-and-see approach for a while. The cash rate will probably remain unchanged for a few months, before moving higher again in March/April.