The Australian economy remains strong. In the last few days, A.B.S. reported a 7% increase in the number of businesses (although 84 % of them are non-employing businesses) and a 1.3 % increase in retail turnover. Furthermore, supply chains are starting to normalise (e.g. container freight rates are declining as are covid related restrictions) and global inflation rates seem to also go down. While these are all certainly good news, it is too early to declare victory and too early to stop the monetary policy tightening. In my view, the policy cash rate still needs to increase further to anchor expectations and deliver inflation rates within targets.