Chanticleer
RBA governor Phil Lowe’s tough message stuns the markets
A hawkish RBA means Australia is headed for tough economic times that will require the central bank to cut rates aggressively into 2024.
Reserve Bank of Australia governor Philip Lowe’s hawkish stance on rates poses a problem for Treasurer Jim Chalmers, who will be pressured to rein in fiscal settings in the May budget.
Chalmers was no doubt as shocked as financial markets were to find Lowe return from his summer break with news that Australia is likely to need a cash rate of at least 3.85 per cent, and possibly higher, to tame inflation.
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