Michele Bullock said inflation had slowed more than expected, convincing the board it was appropriate to slightly ease monetary policy for the first time in four years.
"We can be satisfied with the progress made so far, though the job is definitely not done," she said at a parliamentary grilling on Friday
"The economic outlook remains uncertain and this is especially so the further we look into the future."
While strong employment growth is good news for jobseekers, it leads to uncertainties over how much capacity there is in the labour market.
"We are alert to the possibility that it is signalling a bit more strength in the economy, which could delay or derail the disinflation process," Ms Bullock said.
Questions have also been raised over global policy settings, as they could negatively impact Australia, and the lag between changes to monetary policy and its impact on the economy.
The board recognised Australian households, particularly those with mortgages, have been particularly burdened and noted high inflation had permanently increased the prices.
"This has hurt everyone, but particularly those on lower incomes and more vulnerable," Ms Bullock said.
"We've made good progress on inflation, however, and the board needs to be confident that it is returning to change sustainably."
Some economists argued the board was too premature in cutting rates, such as University of NSW professor Richard Holden, who said underlying inflation was still too high.
But RBA Deputy Governor Andrew Hauser - who will appear before the committee alongside Ms Bullock, the bank's chief economist Sarah Hunter and assistant governor Brad Jones - said the decision to cut was not a "slam dunk", as the market had expected.
"There was, as there always is, an exchange of views about the case for a hold and the case for a cut," he told Bloomberg on Thursday.
"And as you say, there were factors on both sides."
Data released by the Australian Bureau of Statistics on Tuesday showed the labour market remains remarkably resilient, with an extra 44,000 jobs added to the economy in January.
This added to RBA concerns that tightness in the jobs market could contribute to inflation, though Mr Hauser said it was hard to see bad news in the employment data.
Labor MP Jerome Laxale will continue to press the RBA on its progress in removing unnecessary surcharging from card payments.
ACCC chair Gina Cass-Gottlieb told a parliamentary hearing last week the consumer watchdog had no power to stop service providers from overcharging on debit card transactions by blending fees with credit cards.
While a small business may pay around 0.3 or 0.4 per cent to provide debit card services, they were being slugged up to 2.9 per cent by some providers.
"It's a hot topic and I think people are hungry for reform," Mr Laxale told AAP.
"Debit is the new cash and should be treated the same."
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