The minutes from the Reserve Bank board's meeting were broadly consistent with the recent softening of language in preparation for pausing interest rate increases sometime soon.
In the minutes detailing the meeting held two weeks ago, board members deliberated the case for holding the cash rate steady but ultimately landed on another 25 basis point hike.
In support of another rate rise was inflation that was still "too high" and RBA forecasting that indicated inflation was going to remain above its two-three per cent target range for another two years based on modelling with "a little" more tightening.
Board members also highlighted weak productivity indicators in the national accounts that had not even recovered to still-sluggish pre-pandemic levels that "could make inflation more persistent than previously thought".
They also said Australia's cash rate was lower than several other countries.
On the other hand, the board recognised that monetary policy was in restrictive territory and that the economic outlook was uncertain.
"These considerations meant that it would be appropriate at some point to hold the cash rate steady, to assess more fully the effect of the interest rate increases to date," they said.
The board also pointed to the complications posed by lagging impacts in monetary policy.
The central bank also stuck with its softened phrasing about future rate hikes adopted in the monetary policy statement, but also said they would "reconsider the case for a pause" next month.
"Turning to the outlook for interest rates, members observed that further tightening of monetary policy would likely be required to ensure that inflation returns to target and that the current period of high inflation is only temporary."
Since the meeting, the board has seen a strong labour force report and relatively robust business conditions indicators.
Plus, new manufacturing sector data showed conditions rebounding in the first three months of the year
The quarterly industrial trends survey from the Australian Chamber of Commerce and Industry and Westpac revealed a modest expansion in business conditions in the context of a trend downturn.
The survey's actual composite index - a gauge of business conditions - lifted from 49 in December to 55 in March, with the survey revealing expansions in output and new orders and a modest increase in employment, in line with expectations.
A result above 50 indicates industry is expanding.
The expected composite eased from 54.9 to 52.1, suggesting earlier tailwinds are fading and headwinds from high inflation and rising interest rates are intensifying and weighing on the outlook for demand.
On the household sector, gloomy economic conditions have been weighing on confidence, with ANZ and Roy Morgan's weekly survey sinking for the fourth month in a row.
Consumer confidence lost 0.5 points to 76.5, marking the third consecutive week below 80, with three of the five subindices down and "time to buy a major household item" falling 3.5 points to its lowest level since April 2020.
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