In various media outlets of late, Australia's Prime Minister Anthony Albanese has warned the Reserve Bank of Australia against “overreach” in its efforts to tamp down inflation.

The comments come following the RBA's Governor Phillip Lowe's uber hawkish statements over the wires this week that signalled rates could rise at least 2.5% over the coming months.

Albanese said that a sharp spike in borrowing costs would place “real pressure on people,” and while he recognised the RBA’s independence, “they need to be careful that they don’t overreach as well.”

RBA has “more work to do”

Analysts at ANZ Bank said that the RBA Governor Lowe’s speech on Wednesday and the following Q&A made it clear the RBA has “more work to do,” but his view of where the neutral cash rate might lie still includes 2.5%, which is lower than the range alluded to in deputy governor Bullock’s speech on Tuesday.

''On the other hand, he is also open to the possibility that, 'maybe we’ve gone past the point of full employment,' in which case, the RBA will need to take policy into clearly restrictive territory to bring inflation back to target.''

Meanwhile, AUD/USD has steadied this week so far and homes in on 0.7000 the figure.