Reserve Bank Governor Philip Lowe said in a rare interview that he expected inflation to exceed expectations, warning home buyers to brace for higher interest rates.
Home buyers should expect higher interest rates, Reserve Bank Governor Philip Lowe has warned, as the bank will do whatever it takes to get inflation back within its target range.
This year, inflation has risen amid global supply chain pressures due in part to the war in Ukraine and COVID-19 lockdowns in China, while the unemployment rate has fallen to near 50-year lows and wages have begun to lift.Lowe said the current strength of the Australian economy meant it no longer needed emergency interest rate settings. As a result, the RBA board has raised interest rates twice in the past two meetings, taking the official cash rate from its pandemic low of 0.1 per cent to 0.
“In the end of the day, though, our responsibility is a national one: we want to make sure the inflation is low and stable, the country gets to full employment, the financial stability of the country is preserved,” he said.Loading “We were looking into the chasm that was very scary. We wanted to build a bridge to the other side,” Lowe said.