The strong focus on infrastructure delivery in the budget, together with an intention to improve the quality of government spending, means fiscal policy should ultimately contribute to sustained higher growth in the economy.

152

Although we do not think that the inflation outlook justifies further rate cuts at this point, past experience shows that developments in the real economy can influence monetary policy decisions.

121

The strength of domestic demand should continue to be an important driver of monetary policy this year, warranting a degree of caution by the monetary policy committee.

102