The Reserve Bank maintains that its low inflation band remains the best target for monetary policy. But, in an important qualification, it also suggests that maintaining the stability of the financial system needs to be built into its decision-making framework.

While cutting its cash rate to a record low 2 per cent to prop up economic growth, the Reserve Bank has not had to worry much about fuelling consumer price inflation, which has fallen to the bottom of its 2 to 3 per cent target band.