RBA’s Lowe: Further increases in interest rates will be necessary over the months ahead

“I expect that further increases in interest rates will be necessary over the months ahead,” the Reserve Bank of Australia (RBA) said at the post-policy meeting press conference on Tuesday.

Additional quotes

Economy has been very resilient; unemployment is low and economic growth is expected to be strong this year.

Inflation has picked up more quickly, and to a higher level, than was expected and there is evidence that labor costs are increasing more quickly.

Board is not on a pre-set path and will be guided by the evidence and data.

I acknowledge that this increase in interest rates comes earlier than the guidance the bank was providing during the dark days of the pandemic.

In making our decisions over coming months, we need to navigate through some considerable uncertainties.

We have no contemporary experience to guide us with how labor costs and prices in Australia will behave at an unemployment rate below 4 percent.