Australia's second-quarter inflation data was very welcomed and came in as just the central bank expected, a top official said on Thursday, but added the bank remained cautious about the interest rate outlook.

Australias second-quarter inflation data aligned with central bank expectations, providing a positive signal for monetary policy while keeping interest rate decisions cautious, Reserve Bank of Australia (RBA)

Today’s figures confirm inflation is easing, but not as quickly as the bank would like. With the underlying rate still above forecast, the Reserve Bank board may prefer to wait for the September quarter data before cutting interest rates, giving it greater confidence the slowdown is durable.