Keeping low inflation matters, but the RBA is very interested in something else: inflation expectations. It wants people to expect low and stable inflation. The reason is if inflation expectations go up, then wage demands go up, and we risk a wage-price spiral. But if people think the blip in inflation is temporary, then they are less likely to demand higher wages. This leads to one of the core ideas of macroeconomics—that to beat out-of-control inflation we would need to unleash high unemployment.

https://www.forbes.com/advisor/au/personal-finance/are-interest-rate-hikes-over/

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