The Reserve Bank of Australia’s (RBA) governor Philip Lowe said Australia was making “better-than-expected progress” towards its inflation target, but there was still “a way to go.” In an address to the Australian Business Economists, Lowe discussed the recent international trends in inflation and its implications on the Australian economy and the RBA’s monetary policy. Lowe pushed back against recent market expectations that called for policy tightening in 2022 to address the recent surge in inflation, reiterating that Australia’s cash rate would not increase until inflation is “sustainably in the target” of 2 to 3 percent. He acknowledged that it was hard to precisely define what “sustainably in the target range” meant and that there was “genuine uncertainty” in the inflation outlook. “The latest data and forecasts do not warrant an increase in the cash rate in 2022,” he said. “The economy and inflation would have to turn out very …