My initial reaction to the Reserve Bank of Australia’s statement on Tuesday was that it struck a relatively balanced tone, with something in it for everyone.

The statement noted that underlying inflation in the December quarter was 3.2 per cent, “suggesting inflationary pressures are easing a little more quickly than expected”. It also pointed to subdued growth in private demand, easing wage pressures, cautioned that “upside risks remain” and that “the labour market may be somewhat tighter than previously thought”.