Picture this. It’s a Tuesday afternoon, and Reserve Bank governor Michele Bullock is striding to the podium at central bank’s headquarters in Sydney’s Martin Place to face a large contingent of journalists.

The RBA has just raised its inflation forecasts because of sticky inflation. And fresh wage data has just come in too – it’s also stubbornly high, at 4.7 per cent, the same as last quarter. But despite all this, Bullock has done it – she’s cut rates.