There's not much to really glom onto with the RBA policy decision today. They delivered a 50 bps rate hike to bring the cash rate to 2.35%, as expected and priced in by markets (~46 bps going into the decision).

Policymakers offered no change to the inflation forecasts and language but did change up the passage in their last paragraph a little. Let's take a look at that change. In August, they mentioned that:

"Today's increase in interest rates is a further step in the normalisation of monetary conditions in Australia. The increase in interest rates over recent months has been required to bring inflation back to target and to create a more sustainable balance of demand and supply in the Australian economy. The Board expects to take further steps in the process of normalising monetary conditions over the months ahead, but it is not on a pre-set path. The size and timing of future interest rate increases will be guided by the incoming data and the Board's assessment of the outlook for inflation and the labour market. The Board is committed to doing what is necessary to ensure that inflation in Australia returns to target over time."

Today, they said that:

"The further increase in interest rates today will help bring inflation back to target and create a more sustainable balance of demand and supply in the Australian economy. Price stability is a prerequisite for a strong economy and a sustained period of full employment. The Board expects to increase interest rates further over the months ahead, but it is not on a pre-set path. The size and timing of future interest rate increases will be guided by the incoming data and the Board's assessment of the outlook for inflation and the labour market. The Board is committed to doing what is necessary to ensure that inflation in Australia returns to target over time."

As the central bank removed the reference to 'normalisation', they added the point on 'price stability' being a necessary goal that they are targeting. In other words, this appears to be a hint that the cash rate is now in neutral territory but considering that there is no change to the language on forward guidance, they will continue to deliver on rate hikes for as long as necessary and as long as they can get away with it.

Of course, all of that still depends on the Fed as well. The US central bank is very much at the wheel and spearheading the global central bank tightening course, with the RBA merely being the passenger. For now, carry on as you will.