June 21, 2022 - 01:25 PM 250 views
"High inflation is biting into peoples' actual incomes," Reserve Bank of Australia (RBA) Governor Philip Lowe said early Tuesday, according to Reuters, adding to his prior indications for rate hikes.
According to Reuters, the policymaker also stated that they discussed 25 or 50bp (basis points) in the June meeting and will negotiate the same at the July meeting.
· People's actual incomes are being eroded by high inflation.
· Households are aware that they have more debt, but they also have greater assets.
· Household spending has been relatively stable.
· There is no sign of a recession in the horizon, according to him.
· I don't believe that an increase in the unemployment rate is required to achieve inflation.
· It's feasible that the u/e rate will climb; we're on a tight path.
· In a few years, underlying inflation will return to the band.
· The current market consensus is that rate hikes this year are unlikely.
· The RBA is being reviewed, and the board and employees are excited about it.
· Still hoping for a 3.5 percent annual wage increase.
· Continued wage growth of 4 to 5% would make lowering inflation more difficult.
Following the recent comments that highlight the Australian central bank's hawkish tilt, the AUD/USD has renewed its intraday high above 0.6980 points.
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