Mr. Lowe, in a Senate meeting, said that the RBA rate hikes are uncertain, and it doesn’t seem to end soon, marking the highest since 2012. In addition, he said that people need to understand the risk of inflation and the rise in the cost of living.
“High inflation for too long leads to higher interest rates and more unemployment,” says Lowe. “The risks are inevitable, and we’re trying to make a way through a narrow path.”
When Mr. Lowe asked to answer a question in the Senate meeting to say something for renters and mortgage holders, he said, “I can understand that People are hurting, but if we don’t counter inflation, it means higher interest rates and unemployment.”
Economists are unable to understand the inflation results on jobs, wages, and inflation. They say that the timing of interest rate hikes for Australia is a terrible move, writes business editor Ian Verrender.
Current inflation in Australia is at 7.8 percent, too high since 2012, and unemployment would need to rise before any major changes.
Mr. Lowe was found unhappy with the criticism and said it is unfair to comment on the decision of interest rate hikes. He added that he is not just one person, but nine of them on the RBA board make the decision.
- Published By Team Australia News