The fall in petrol prices appears to have tamed concerns over the inflation outlook, but the Reserve Bank of Australia is yet to be convinced that price pressures have cooled.
While the RBA left the cash rate at a record low 0.1 per cent following Tuesday's monthly board meeting, the word "patient" was notably missing from governor Philip Lowe's statement in terms of the interest rate outlook.
He noted the annual inflation rate is already running at 3.5 per cent and the more policy-sensitive underlying measure is at 2.6 per cent, compared to the RBA's two to three per cent target.
