The central bank has increased its predictions for economic growth and inflation in its latest Statement on Monetary Policy, which was published yesterday but completed before the big falls on world stockmarkets.
United States authorities are investigating what has become known as a ''fat-finger'' trade, when someone reportedly accidentally sold 16billion rather than 16million shares. The sale sent a market already on edge from concerns about Greek sovereign debt into panic.
The Reserve noted in its statement that Greece was a risk to the global economy, but it painted an upbeat picture for Australia.
It increased its forecasts for economic growth, as measured by gross domestic product, from 3.5per cent to 3.75per cent in 2011 and early 2012. It also increased its predictions for underlying inflation from 2.5per cent to 2.75per cent in 2011 and 3per cent the top of its target band in 2012.
Headline inflation is expected to remain at 3per cent or above throughout the forecasts, with the exception of late 2011 when it is expected to dip to 2.75per cent.
The Reserve said its forecasts were ''based on the technical assumption of some further rise in the cash rate over the forecast period ...''
It noted the markets expected the cash rate to hit 5per cent by year-end, up from 4.5per cent after this week's rise.
''Although the cash rate remains below its medium-term average, variable lending rates are now around their average levels, as market developments have pushed up most interest rates relative to the cash rate,'' the bank said.