The economists got it right – as predicted, the Reserve Bank has left the cash rate on hold at 4.35% for the seventh month running. It’s held rates steady because of something we’ve been warned of for a while now – that “inflation remains above target and is proving persistent”. Governor Michele Bullock reiterated that in her post-board meeting press conference yesterday, saying “we’re at a really complex part of the cycle” in the fight to bring inflation back within the 2-3% target – she now expects it to be “some time” before inflation gets there. Before the next meeting on 5-6 August, they’re keeping an eye on the June quarter consumer price index (CPI) data – which tracks the changing values of everything we produce. The Stage 3 tax cuts also land on 1 July – so expect more analysis about how they’ll affect inflation, too…