Lowe knows a ‘strong’ economy needs higher interest rates
In RBA governor Philip Lowe’s calculation, if inflation is allowed to keep rising the central bank will need to crunch the economy even harder and push unemployment higher than desired.
As the cries about steep interest rate rises grow louder, Reserve Bank of Australia governor Philip Lowe has fired back at naysayers who complain the bank is too focused on slaying inflation.
“Price stability is a prerequisite for a strong economy and a sustained period of full employment,” Lowe said in his post-board meeting statement on Tuesday.
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John Kehoe is economics editor at Parliament House, Canberra. He writes on economics, politics and business. John was Washington correspondent covering Donald Trump’s first election. He joined the Financial Review in 2008 from Treasury. Connect with John on Twitter. Email John at jkehoe@afr.com
