Employment, economy need to grow below trend for a while.

Economy would be closer to sustainable balance point with unemployment at 4.5%.

Australia is at or even above estimates of full employment for the first time in decades.

Employment is above what we would consider to be consistent with our inflation target.

Have been willing to accept more gradual return of inflation to target than many other central banks.

But entrenched inflation would lead to higher rates, deep recession and more unemployment.

Labour market conditions will invariably soften as inflation is contained.

Balance between labor demand and supply has improved somewhat recently.

Nevertheless, the labor market remains tight by most measures.