Australia’s Persistent Inflation Tests RBA’s Patience, Lowe Says
- Lowe reiterates some further policy tightening may be needed
- Recent data suggest upside risks to bank’s inflation outlook
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Australia’s recent upside surprises in inflation are testing the Reserve Bank’s patience, Governor Philip Lowe said, highlighting a rebounding housing market, strong wage gains and persistent service price pressures.
“We want to get inflation back to target within a couple of years and that hasn’t changed. What has changed over the past couple of months is our assessment of the risks,” Lowe said in response to a question in Sydney Wednesday. “We have been prepared to be patient in getting inflation back to target but our patience has a limit and the risks are testing that limit.”