"We understand that many people are finding the rise in interest rates difficult. It is necessary, though, to ensure that the current period of higher inflation is only temporary. As I spoke about earlier, if high inflation were to persist, all Australians would pay a heavy price," Reserve Bank of Australia Governor Philip Lowe said in his keynote speech at the annual CEDA dinner in Sydney.
You can find the full text of the speech here.
"Given our mandate for price stability and full employment, the Board expects to increase interest rates further over the period ahead. We are not on a pre-set path though. We have not ruled out returning to 50 basis point increases if that is necessary. Nor have we ruled out keeping rates unchanged for a time as we assess the state of the economy and the outlook for inflation. The Board’s priority is to return inflation to target over time. It is resolute in its determination to make sure that this current period of high inflation is only temporary," he added.
"The evidence shows that economies work better with low inflation and that once inflation becomes entrenched, it is very costly to stamp it out. It is for these reasons that the Reserve Bank Board is resolute in its determination to return inflation to target and we will do what is necessary to achieve that.", Governor noted.
