RBA Governor Lowe says inflation hits 7%…will have to raise rates


More from Lowe:

  • government scrutiny is a very appropriate thing to do
  • flexible inflation
  • household spending is still quite strong, even if they are cautious
  • the labor market is an incredibly positive story, beyond the point of full employment
  • going to have to raise rates with inflation up to 6% or 7%
  • assume that at some point rates will eventually reach a neutral level of 2.5%
  • regular rate increases are now needed to contain inflation

I have bolded relevant remarks.

I guess what’s even more relevant is that since the CPI is going from 6 to 7, why is the cash rate at 1.35% right now? Why is the RBA tinkering?

Where we are :

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