The RBA says the fight against inflation has entered a new phase. Here's what it means for interest rates

_{The RBA board decided to "sit and assess" the impact of past rate rises on inflation at its August meeting.(AAP: Bianca De Marchi)}

Australia has entered a new frontier in its fight against inflation after the Reserve Bank left interest rates on hold at 4.1 per cent for the second month in a row at its August meeting.

Outgoing RBA governor Philip Lowe told a parliamentary committee last week that Australia has entered a "third phase" of its battle against high inflation, which he dubbed the "calibration phase".

"We're in a world where we're just making, I hope, small adjustments to calibrate policy," he said on Friday.

But it doesn't mean we're cleared from the threat of inflation and rate cuts are on the horizon. In fact, the economy is likely to stay in this holding pattern for a while yet...

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