Domestically, Household income growth had remained low and the March quarter inflation data indicated that inflationary pressures were lower than previously thought. The Bank’s goals of reducing unemployment and returning inflation towards the midpoint are now anticipated to occur at a more gradual pace than previously expected. On the upside, it was possible to combine the effects of continued accommodative financial conditions, the increase in Australia’s terms of trade, a renewed expansion in the resources sector and the expected lift in household disposable income.