The Reserve Bank of Australia's decision to lift the cash rate for a third time this year has been backed by the Australian Chamber of Commerce and Industry which says a failure to do so would 'risk embedding high inflation'.
Tuesday’s increase was the biggest rise in the cash rate since February 2000.
Stream more on politics with Flash. 25+ news channels in 1 place. New to Flash? Try 1 month free. Offer ends 31 October, 2022. “However, a failure to do so would only risk embedding high inflation, forcing the Reserve Bank to take more drastic action. RBA Governor Philip Lowe listed global inflation as one of the key reasons behind Tuesday's cash rate rise. Picture: Getty Images
"Higher interest rates will also help establish a more sustainable balance between the demand for and the supply of goods and services. Medium-term inflation expectations remain well anchored and it is important that this remains the case." Treasurer Jim Chalmers said the RBA’s rate increase was “very challenging news” for those who are “already doing it tough”.
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