The Reserve Financial institution has flagged extra rate of interest rises are possible within the face of excessive inflation over the following yr.
The board of governors' precedence is to return inflation to focus on, the financial institution's quarterly assertion on financial coverage stated.
"Excessive inflation makes life tough for folks and damages the functioning of the financial system," the assertion learn.
"And if excessive inflation have been to develop into entrenched in folks's expectations, it might be very pricey to scale back later."
The patron worth index inflation is forecast to say no to 4.75 per cent in 2023 and to round three per cent by mid-2025.
Inflation is predicted to drop over time due to slower home financial floor and a "moderation in labour market circumstances".
However the RBA assertion stated international inflation "appears to be like to have peaked".
The assertion particularly cited China's abrupt reversal on its COVID-19 coverage as a think about international demand.
"The disruptions from the final part of restrictions in November and the wave of sickness within the following month led to weak exercise within the December quarter," the assertion learn.
"Since then, although, the Chinese language financial system has recovered rapidly.
"Along with the Chinese language authorities' shift to a extra growth-focused coverage stance, the sooner opening of the Chinese language financial system has introduced ahead its restoration from what had beforehand been anticipated.
"This has added to development in international demand within the close to time period, particularly for some industrial commodities, and so is supporting Australia's phrases of commerce and nationwide earnings."
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The assertion stated the board can be intently monitoring international financial developments, family spending, labour market traits and inflation figures.
"It stays resolute in its dedication to return inflation to focus on and can do what is critical to attain this," the assertion learn.
The RBA has lifted 9 consecutive rate of interest rises.
At current, the official money fee is 3.35 per cent.
Since April 2022 - when rates of interest have been simply 0.10 per cent - repayments on that very same mortgage have elevated by $969 a month or $11,628 a yr.
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