The RBA’s latest inflation and wage predictions help explain why Australia’s interest rate nightmare isn’t over

The Reserve Bank is closely monitoring how households cope with higher debt repayments – including when about a third of mortgage holders switch from fixed rates of 2% or so to 5% or more. Photograph: Lisa Maree Williams/Getty Images

Those hoping the Reserve Bank might cut Australian workers a bit of slack in its battle to curb inflation will be disappointed by the central bank’s latest economic report.

The release of the RBA’s quarterly statement on monetary policy on Friday does help us understand the thinking behind Tuesday’s decision to raise interest rates for a ninth meeting in a row and why further increases are likely in coming months.