The RBA Governor is speaking now (and this press conference is going to go for quite some time) where she is defending the bank’s board timing in only cutting rates now, while also saying the battle is not yet won:

Bullock:

As you know the board decided to cut the cash rate by 25 basis points to 4.1%. The cash rate has been at 4.35% since November 2023. At that time, in November 23, the upside risks to inflation had increased, so the board decided to raise the cash rate to 4.35% from 4. 1%.

To address those upside risks. Since then, inflation has fallen. And recent data suggests it’s eased a bit more than expected. Growth in private demand has also been quite weak, and wage pressures have eased. The board therefore judged it was appropriate to remove the cautionary raise under taken in 2023. I have said many times that we need to see inflation moving sustainably towards our 2-3% target band before we eased rates.

In December, we said we gained confidence that things were headed in the right direction. Now we’re at a point where underlying inflation is at 3.2%, and headline inflation is 2.4%. Inflation has eased over the past three quarters, and in the most repeat quarter, a bit more than our forecasts had anticipated. This is increased our confidence further.

It’s clear that higher interest rates have been working as anticipated, restricting economic activity, and putting downward pressure on inflation. The board judges it’s time to reduce a little bit of that restrictiveness, but we cannot declare victory on inflation just yet.