The RBA has reiterated that it will maintain a low cash rate until it is confident that the economy is on track to recovery, with a focus on reaching the inflation target and reducing unemployment. As part of your Policy Brief, explain what is meant by the inflation target? According to the Cash Rate and Consumer Price Index information presented in the two charts below, what is your assessment of how far away the Australian economy is from reaching this target? Graph of Australia's Cash Rate (1990 to 2021) % % 20.00 20.00 18.00 18.00 16.00 16.00 14.00 14.00 12.00 12.00 10.00 10.00 8.00 8.00 6.00 6.00 4.00 4.00 2.00 2.00 0.00 0.00 1990 1995 2000 2005 2010 2015 2020 Source: RBA Source: RBA, Cash Rate Target https://www.rba.gov.au/statistics/cash-rate/ (Accessed 6 October 2021) Graph of annual movement in Australia CPI (%) (2016 to 2021) CPI, Trimmed mean & Weighted median: Annual movement (%) O -1 Jun- 16 Sep-16 Dec-16 far-17 C-17 Jun-17 Sep. Mar-18 Jun-18 Sep-18 Dec-18 Mar-19 Jun-19 Sep-19 Dec-19 Mar-20 Jun-20 Sep-20 Dec-20 Mar-21 Jun-21 CPI - Trimmed mean - Weighted median Source: ABS, Consumer Price Index Australia https://www.abs.gov.au/statistics/economy/price-indexes- and-inflation/consumer-price-index-australia/jun-2021 (Accessed 28 July 2021)