Reserve Bank governor Philip Lowe said interest rates in Australia were still “very low” and people should be prepared for more pain in coming months.
Reserve Bank of Australia governor Philip Lowe said a 4 per cent official interest rate by year’s end was not likely, but acknowledged investors tipping that outcome had been a better judge of rates than the RBA.
“As we chart our way back to 2 per cent to 3 per cent inflation, Australians should be prepared for more interest rate increases,” he said inHe also said he would leave it to others to judge whether market pricing for a 4 per cent cash rate by December was “reasonable”.In his first major speech following a double “business as usual”, half-percentage-point interest rate rise on June 7, Dr Lowe echoed Prime Minister Anthony Albanese in dismissing the prospects of a local recession.
The RBA governor said while interest rates were at the start of an upward shift, the bank believed households were in “good shape”. He said the RBA would closely watch household consumption in coming months to guide its moves on interest rates.
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