'Life is more complicated': RBA governor warns Australians to brace for higher inflation, lower growth
abc.net.au/news/philip-lowe-ced-speech-inflation-interest-rates/101685190The Reserve Bank governor has warned that life is going to continue being difficult for monetary policymakers — which likely means most households and businesses as well.RBA governor Philip Lowe says globalisation helped central banks keep price rises low and stable over the past three decades
Increasing trade restrictions and global conflict are reversing this process and risk reduced supply and higher prices Mr Lowe says the effects of climate change are also likely to push prices up and make them more volatile After nearly three decades of low and stable inflation that generally remained within the Reserve Bank's target range of 2-3 per cent, central bankers were caught off-guard by the prices surge during the past year-and-a-half.
"An inflation rate of 7 or 8 per cent was something that was widely thought to be consigned to the history books," RBA governor Philip Lowe said at the Committee for Economic Development of Australia's annual dinner.Mr Lowe again warned that it was important for inflation to be tamed quickly, before expectations of higher prices set in, otherwise it would be much harder and more economically damaging to do so, as was the case in the 1980s and early '90s.
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