RBA Governor Philip Lowe said interest rates were likely to continue climbing, although he signalled the RBA was looking at whether it could continue with large increases such as the consecutive 0.5 percentage point hikes. | Shane Wright, Rachel Clun
Reserve Bank governor Philip Lowe has warned darkening global economic clouds will make it even harder for Australia to achieve a “soft landing”, saying events in Europe, China and the United States will have a direct impact on the economy.
Inflation, which the Reserve Bank aims to keep between 2 and 3 per cent, is at 6.1 per cent and forecast to almost reach 8 per cent by year’s end. “At some point, it will be appropriate to slow the rate of increase in interest rates and the case for doing that becomes stronger as the level of interest rates increases.”Lowe said there was a large level of uncertainty about the economy, both domestically and overseas.
“The Chinese economy is also facing major challenges due to the combination of COVID, a severe drought and very weak conditions in the property sector.
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