The RBA argued that monetary policy was only “somewhat restrictive” at its September meeting. However, the Bank’s decision to lift the cash rate further at that meeting means that policy is now more restrictive and there are mounting signs that the cumulative 100bp of tightening delivered this year is taking its toll on activity and the labour market. For now, that should convince the Bank that it has tightened policy sufficiently though inflation will have to come off the boil before the tightening cycle is well and truly over.
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