Will assess incoming information as its sets policy to support full employment in Australia and inflation outcomes consistent with the target.

Central forecast is for the unemployment rate to fall to below 4 per cent this year and to remain below 4 per cent next year.

Inflation has picked up and a further increase is expected.

Wages growth has picked up, but, at the aggregate level, is only around the relatively low rates prevailing before the pandemic.

Given the tightness of the labor market, a further pick-up in aggregate wages growth and broader measures of labour costs is in prospect.

Growth in labor costs has been below rates that are likely to be consistent with inflation being sustainably at target.

The main sources of uncertainty relate to the speed of resolution of the various supply-side issues, developments in global energy markets and the evolution of overall labor costs.