The RBA should increase the cash rate and communicate its intention to continue to do so until there is more substantial evidence that inflation has turned the corner. The financial stability concerns in the US and Europe have subsided and the latest monthly measure of inflation fell, which is a positive development, but with inflation at 6.8% (Feb 2023), inflation is still too high given the current level of the cash rate. In fact, the real cash rate continues to be near historic lows as well as the unemployment rate at 3.5%, suggesting monetary policy settings remain expansionary. More needs to be done to put monetary policy on a more contractionary stance over the forecast horizon in order to ensure inflation returns to target faster than by 2025 and inflation expectations remain anchored.