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Inflation is too high and will hit 7pc by the end of the year: Lowe
Reserve Bank of Australia governor Philip Lowe has appeared on 7.30 Report on the ABC to speak about inflation and the current rate rise.
Leigh Sales opens immediately by asking why the Reserve Bank went so hard on rates.
“I think Australians need to be prepared for higher interest rates. We had emergency settings during the pandemic, I think that was the right thing to do, but the emergency is over. And it’s time to remove the emergency settings and move to more normal settings of monetary policy,” he says.
“The other consideration was that inflation is high. It’s too high. At the moment it’s 5 per cent and by the end of the year I expect inflation to get to 7 per cent. That’s a very high number and we need to be able to chart a course back to 2 per cent to 3 per cent inflation. I’m confident we can do that but it’s going to take time.
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