The Reserve Bank of Australia says better-than-expected progress has been made on its goals for employment and inflation, which is why the board decided to end monetary support through its bond buying program this month.
But the minutes of its February 1 board meeting reaffirmed its members are yet to convinced that the pick-up in inflation will be sustained and are prepared to be patient before raise the cash rate.
"There were uncertainties about how persistent the pick-up in inflation would be as supply-side problems were resolved," the minutes released on Tuesday say.
"Wages growth also remained modest and it was likely to be some time before aggregate wages growth would be at a rate consistent with inflation being sustainably at target."
Even so, the minutes note the unemployment rate was at its lowest level since 2008 and underlying inflation was in the middle of the two to three per cent target range for the first time since 2014.
"In these circumstances, members agreed that it was the right time to draw the bond purchase program to a close," the minutes say.
Since that board meeting, RBA governor Philip Lowe has provided a broader view of the outlook in both a speech to the National Press Club and an appearance before the House of Representatives economics committee.
The central bank has also released its quarterly statement on monetary policy.
Appearing before federal politicians last week, Dr Lowe reiterated that a rise in the cash rate from a record low 0.1 per cent is plausible this year.
That said, he still wants to see at least a couple more quarterly inflation reports before making a final decision on rates.
The March quarter consumer price index is due on April 27 and the June quarter report is released on July 27.
As such, many economists are predicting a rise in the cash rate at the August board meeting.
Meanwhile, the planned reopening of international borders and signs the Omicron variant peak has passed have helped lift the mood of Australians, despite record petrol prices and the potential for higher interest rates.
The latest ANZ-Roy Morgan consumer confidence index - a pointer to future household spending - jumped 3.3 per cent to 101.3, its biggest weekly gain since April 2021.
"The passing of the Omicron peak, along with the news that international borders will reopen to vaccinated tourists later this month, no doubt helped lift sentiment despite rising petrol prices," ANZ head of Australian economics David Plank said..
The national average petrol price gained a further five cents a litre to a new peak of 176.9 cents last week, with even higher prices recorded in Melbourne, Hobart, Canberra and Perth.
"Although confidence rose above the neutral level of 100, it is still well below its long-run average, so we can't say higher inflation isn't having an impact," Mr Plank said.
Consumer inflation expectations rose 0.2 percentage points in the past week, returning to a recent seven-year high of five per cent.
Rising inflation and an expected fall to a 50-year low below four per cent in the unemployment rate are key factors behind a potential interest rate rise by the Reserve Bank this year.