Lowe Sees High Commodity Prices, Asia Rate Pressure

Global commodity prices are likely to remain elevated for an extended period and tighter monetary policy in Asia may be needed to contain inflation, Reserve Bank of Australia official Philip Lowe said.

“What does seem clear is that the world economy is going through a change in relative prices, and that this change is likely to be quite persistent,” Lowe, an assistant governor, said in the text of a speech today in Sydney. “At least for the time being, it would appear that the ability of the world to produce commodities is becoming a key constraint on non-inflationary growth for the global economy.”