What’s behind RBA boss Phil Lowe’s growing inflation anxiety
Philip Lowe’s list of concerns has grown even longer. And while none of these on their own would have been enough to warrant a rate rise, in combination they proved decisive.
Reserve Bank governor Philip Lowe is becoming increasingly anxious that the central bank may overshoot the timeframe it has set itself for ensuring that inflation heads back to its 2 per cent-to-3 per cent target range.
Lowe has quite sensibly decided against clamping down heavily on the economy to quash inflationary pressures. Instead, the RBA chose a more patient approach that would lead to inflation gliding lower. On Tuesday, the RBA lifted its cash rate a quarter percentage point to 4.1 per cent, the eleventh rise since May last year.
Loading...
Jill Margo was a senior writer at The Australian Financial Review.
