With Tuesday’s 0.25 of a percentage point rate rise, official interest rates are now set at 3.1 per cent for at least 63 days. That gives Reserve Bank of Australia governor Philip Lowe plenty of time to reflect on the dramatic year that was – and the puzzle of what comes next.

The lagged effects of monetary policy, which Lowe again highlighted on Tuesday, are arguably the biggest challenge facing the central bank. With inflation yet to peak, Lowe needs the eight consecutive increases he has delivered since May to start making a bigger dent.