Reserve Bank Governor Philip Lowe says the recent increases to interest rates have been required to move monetary policy into “restrictive territory” to deal with the “highest rate of inflation” in 30 years.
“To be clear, the alternative to the recent increase in interest rates would’ve been more persistent inflation and ultimately even higher interest rates and more unemployment,” Mr Lowe said.
“While the increases have been unwelcomed by many people, they have been necessary to preserve price stability in Australia.”
Reserve Bank Governor Philip Lowe says the recent increases to interest rates have been required to move monetary policy into “restrictive territory” to deal with the “highest rate of inflation” in 30 years. “To be clear, the alternative to the recent increase in interest rates would’ve been more persistent inflation and ultimately even higher interest rates and more unemployment,” Mr Lowe said. “While the increases have been unwelcomed by many people, they have been necessary to preserve price stability in Australia.”
