The Reserve Bank of Australia (RBA) has warned that interest rates need to go higher amid the current cost of living crisis to rein in inflation and avoid the risk of recession.
In a speech to the Reserve Bank Board dinner in Hobart, Philip Lowe, the governor of the RBA, said the bank “will do what is necessary” to return inflation back to sustainable levels.
“[High inflation] is a scourge. High inflation devalues your savings. It worsens inequality in our society, and it undermines our living standards. It hurts us all by impairing the functioning of our economy,” he said.
“It is for these reasons that the Reserve Bank Board will make sure that this episode of high inflation is only temporary.”…