Board remains resolute in its determination to return inflation to target.

Some further tightening of monetary policy may be required.

Higher interest rates are working to establish a more sustainable balance between supply and demand in the economy.

Board is still expecting the economy to grow as inflation returns to the 2–3 per cent target range.

In light of this and the uncertainty surrounding the economic outlook, the board decided to hold interest rates steady this month.

This will provide some time to assess the impact of the increase in interest rates to date and the economic outlook.

Any tightening will depend upon how the economy and inflation evolve.

Inflation is still too high and will remain so for some time yet.

Board’s priority is to return inflation to target within a reasonable timeframe.

A significant source of uncertainty continues to be the outlook for household consumption.

Board remains alert to the risk that expectations of ongoing high inflation will contribute to larger increases in both prices and wage.