If the exchange rate pushes inflation expectations permanently higher, the Reserve Bank will have a tough job on its hands. The market is premature in pricing a near-term easing by the central bank.
The central bank is an inflation fighter, not a growth defender. It would be nothing short of negligent for the Reserve Bank to move away from a tightening bias.
It was a classic case of when there's a lot of noise, the best thing a central bank can do is nothing.
There is no question the economy is slowing.