The Reserve Bank still has its finger firmly on the interest rate trigger, even though it admits that Australia’s inflation rate – at 1.3 per cent – remains below its target range.

This became clear when the bank released the minutes of the board meeting, earlier this month, which approved its third straight monthly rate rise of 25 basis points.

The minutes said, in part:”Members agreed that if developments unfolded as currently expected, monetary policy would need to be adjusted further to lessen the degree of stimulus.”

But the bank added:”The adjustment would not be intended to slow demand, compared with the current forecast path, but aimed simply at keeping the stance of policy appropriate for improving economic conditions.”

The bank’s target is to keep inflation within a 2-3 per cent range, over the course of a business cycle.

It noted that house prices, which have worried the bank in the past, had continued to rise “at a robust pace” in October.

And it said lending to home buyers is still growing “at a solid rate.”

The bank noted, also,  both that consumer sentiment is still “at very high levels” and that engineering  construction had been at “very high levels.”

These were expected to rise further as LNG projects pick up, the bank said.

There won’t be a fourth rise, next month.

The bank’s board will not meet again, to review rates, until February.

However, on current signals, the chance of another rise then must be rated as high.