abc.net.au/news/philip-lowe-rba-board-dinner-interest-rates/102294090Just a month after the Reserve Bank of Australia kept rates on hold — to assess the economic fallout from an unprecedented string of 10 consecutive rate hikes — on Tuesday afternoon it shocked most experts with another rise.RBA governor Philip Lowe says inflation needs to be contained before it becomes entrenched
Mr Lowe says the bank considered the effect a changing rate outlook was having on house prices and the exchange rate The decision was taken at an RBA board meeting in Perth — the first time since before the pandemic that the bank had made it to the West — and governor Philip Lowe spoke at a dinner filled with business leaders to explain why the pause was so short.
"We have seen further evidence that the Australian labour market is still very tight, that services price inflation is proving to be uncomfortably persistent abroad, and that asset prices — including the exchange rate and housing prices — are responding to changes in the interest rate outlook," he told the gathered crowd., showing the jobless rate remained at near-a-50-year low of 3.5 per cent after more than 50,000 extra jobs were added to the economy.
The Australian dollar had been edging lower — sitting just above 66 US cents before the rates decision was announced — jumping to 67 US cents soon after. A lower dollar lifts import prices and, thus, inflation.
Loans Loans Latest News, Loans Loans Headlines
Similar News:You can also read news stories similar to this one that we have collected from other news sources.
Source: 9NewsAUS - 🏆 10. / 72 Read more »
Source: abcnews - 🏆 5. / 83 Read more »
Source: abcbrisbane - 🏆 22. / 51 Read more »