Australia's central bank chief said there are signs the economy is adjusting as anticipated, though it's still unclear if this year's interest-rate hikes are enough to return inflation to target or whether additional tightening will be needed.

RBA Governor Michele Bullock noted that recent data indicates the economy is cooling in line with the bank's forecasts. The rate increases implemented throughout the year have begun to take effect, with consumer spending and housing activity showing signs of moderation in Australia.

However, Bullock emphasized that the full impact of monetary policy operates with a lag, making it difficult to assess whether the current stance is sufficiently restrictive. The RBA board remains vigilant, monitoring incoming data on labor market conditions, services inflation, and global developments.

The central bank's next moves will depend on whether inflation continues to track toward the 2% to 3% target range. While the economy is adjusting as expected, the RBA has not ruled out further tightening if price pressures prove more persistent than forecast.