There is much on the horizon to support household incomes, which may well prevent the slowdown the Reserve Bank expects.

We think it's one of the best statements from the bank in a long time. It states the case pretty clearly. It's unequivocal.

It's a real issue for the central bank when they are trying to keep the cash rate up, most of the forward pricing in the interest rate market tends to slip, and it's frustrating.

The bank needs to be sure inflation will come down. This is not a time to be talking of easing policy.