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Reserve Bank governor Philip Low's full speech to the Australian Business Economists | 7NEWS

Reserve Bank governor Philip Lowe says recent data indicates that Australia is making better-than-expected progress in achieving the two to three per cent inflation target, but “we still have a way to go”.

While at 2.1 per cent in the September quarter, underlying inflation has only just returned to the target band for the first time in six years and is only just above the bottom of the range.

“The inflation outlook is more uncertain than it has been for some time,” Dr Lowe told an Australian Business Economists meeting.

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