RBA governor Philip Lowe has indicated the official interest rate could almost double in coming months as the central bank moves swiftly to normalise pandemic era monetary policy and curb rising prices.
Governor Philip Lowe has indicated the official interest rate could double in coming months as the Reserve Bank of Australia moves swiftly to normalise pandemic-era monetary policy and curb rising prices.
Though the cash rate could go higher, the governor emphasised neutral was just a reference point: “It is not the basis of a mechanical rule, and we are not on a pre-set path to achieve any specific level of the cash rate.“ The comments come as big four lender ANZ forecast a further four back-to-back 0.5 percentage point increases to interest rates from August, taking the cash rate to 3.35 per cent by the end of 2022. On July 5, the RBA raised its benchmark rate by a half percentage point to 1.35 per cent.
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