The Reserve Bank Governor has warned Australians they need to be prepared for substantial interest rate rises over the rest of this year, conceding he's not sure how high they might go.Philip Lowe says it would be "reasonable" to think interest rates could get to 2.5 per cent at some point
"How fast we get to 2.5 per cent, indeed whether we get to 2.5 per cent, is going to be determined by events." "At the individual level some people have taken loans that they may not have wanted to take out in retrospect, but the overall picture, which is really very much the focus of the Reserve Bank, is a pretty resilient economy," Dr Lowe said.The Reserve Bank is "committed to learning" from the impact of the pandemic on the economy, Philip Lowe says.
Although Dr Lowe is warning inflation could hit 7 per cent by Christmas, he said there are already signs it will fall in the first quarter next year and again in the second quarter.
.75%next month for sure, and if you are going to retire in the next 2yrs, 50%of you super gone in stock market crash. Get out now if you can!
NFI.... PhilLoweMustGo
RBA is behind the curve, and should apologise for its delay in starting to raise interest rates, instead of blithely explaining away its mistake. The ScoMo era is over— who’s gonna break this news to PhiLo?
Did you ask him how he still has his job? If he was an civil engineer or a surgeon and had made the mistakes he'd made he'd have lost his job a long time ago.
Didn't he say they wouldn't go up til 2024? How much does this guy get paid? And he has no idea what the outcomes of his pisspoor management will be?
You’ll be right on your wage Phillip ah😜
Not sure if Lowe knows what he's doing...time for a change...
RBAInfo’s Phil Lowe surely understands that it’s highly problematic when those with their hands on the monetary policy levers become policy commentators. People make decisions based on his views. Given RBAInfo record on not keeping inflation between 2 & 3%, just shut up.
and Mr Lowe is so calm, explaining the ausecon I wonder what would make him anxious, even just a little. Sky diving, Fast cars , Wild animals
Why bother listening to anyone from the RBA they have been consistently wrong for 10 years
In the past, interest rates had to be a few percentage points higher than inflation (expected to hit 7%) to bring inflation down. Why and how is the current case different? Mr Lowe’s economic thinking seems to be: She'll be right + 2.5% interest rate is the magic number!
great, I feel relaxed knowing our economy is in safe hands
If Lowe doesn't understand people make decisions based on what he says, he doesn't understand his job. Worse still, his comments indicated a grand misunderstand about the frailty of markets. Giving strong predictions of no movement was foolish at the time, not just in retrospect.
Has Lowe been asleep for the last year or did the lnp lock him in the Reserve Basement of Australia?
jamesglenday it isn’t clear how a ff rate of 2.5% would squelch an inflation rate of 8%
I’d love Lowe to answer how attacking demand fixes an inflationary environment driven by increased input costs. Attacking demand won’t fix this iteration of inflation. Only a resolution in Ukraine, and a relaxation of Covid restrictions in China does.
Bloke who says rates won’t go up puts rates up. We are all being duped. auspol HoldTheLettuce
I’m more sure than him that it will not go higher than inflation itself 🤣
Inflation caused by govt lending $$ from the RBA is causing problems in our economy. Let’s ask the RBA how to fix this 😂. The RBA is an entity that profits from Australian govt money printing.
Short the big 3 Aussie mortgage banks equity
Does the Reserve Bank Board (1) get reports on the international situation from the Office of National Assessments and overseas economists (2) allow it’s directors to Independently present research reports and views that differ from the board consensus (3) avoid “groupthink”
TLDR: Y’all saved some $ in the pandemic. Oops. Now petrol & power companies (& anyone else who sells stuff you need) is grabbing for more $ bc they know you’ve got it. So count us in too Don’t like it - get a 2nd job. Plenty going Crisis will be over when you’re broke again
Inflation in Australia is caused by high fuel prices, petrol, oil and gas, and supply shortages from overseas, external forces, so how will putting intersts rates up stop them from going up, all it does is cause havic for home buyers…
He talks about Feb / March 2020 as justification for over stimulating, but not one is questioning their response during that period. It was his decision to keep rates low for so long and his talk about not raising till 2024 that was so dangerous. He should resign immediately
GREAT abc730 interview tonight with Dr. Philip Lowe. Thank you ABC, Leigh Sales and Dr. Lowe RBAInfo 🙏
Someone needs to tell him to stop copy/pasting whatever the US fed does, that’s why he doesn’t know
People spend more money to live. How can this be inflation. Its gouging by the big companies. Profiteering. Taking money from the poor & giving it to the rich. Getting more money is driving inflation. No one is calling out the increased weather of the rich as a factor.
GREAT abc730 interview tonight with Dr. Philip Lowe. Thank you ABC, Leigh Sales and Dr. Lowe RBAInfo 🙏
Hang on …. Fix your rates and start saving
Really interesting and considered interview. Thank you. IHaving interest rates as the only lever at their disposal is such a blunt instrument though, and they seem to have a disproportionate impact on all the wrong people.
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