The Reserve Bank of Australia’s job is not done. Talk of rate cuts is premature. But exactly how much higher Australian interest rates must go is not clear. At 4.1 per cent, the Australian cash rate is well below the global benchmark US Federal funds rate of 5.5 per cent.

The RBA has been cautious in its quest to return inflation to its 2 per cent-to-3 per cent target range, preferring a gradual approach that aims to bring inflation down by 2025 rather than the more aggressive rate increases seen in most other countries where there is much less tolerance for inflation.