RBA Gov Lowe: Further tightening of monetary policy may be needed

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• Reserve Bank of Australia

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• A Narrow Path

Headlines via Reuters:

• Too early to declare victory in the battle against inflation Inflation Inflation is defined as a quantitative measure of the rate in which the average price level of goods and services in an economy or country increases over a period of time. It is the rise in the general level of prices where a given currency effectively buys less than it did in prior periods.In terms of assessing the strength or currencies, and by extension foreign exchange, inflation or measures of it are extremely influential. Inflation stems from the overall creation of money. This money is m Inflation is defined as a quantitative measure of the rate in which the average price level of goods and services in an economy or country increases over a period of time. It is the rise in the general level of prices where a given currency effectively buys less than it did in prior periods.In terms of assessing the strength or currencies, and by extension foreign exchange, inflation or measures of it are extremely influential. Inflation stems from the overall creation of money. This money is m Read this Term
• June rate rise followed information suggesting greater upside risks to bank’s inflation outlook
• Some further tightening of monetary policy may be required, depending on how economy and inflation evolve
• Ambition is to navigate narrow path where inflation returns to target and economy grows
• Still possible to navigate, but it is narrow path and likely to be bumpy, risks on both sides
• Evidence indicates that higher interest rates are working and that inflation is coming down
• April CPI reading has not changed assessment inflation is trending lower
• Job at central bank Central bank A central bank is a financial institution that manages a country's monetary policy, and that often also includes issuing and/or monitoring the currency and regulating the money supply. Central banks also typically act as a lender of last resort to banks in times of financial crisis, and may also supervise and regulate banks and other financial institutions. Examples of central banks include the Federal Reserve in the United States, the European Central Bank, and the Bank of Japan.The chief task A central bank is a financial institution that manages a country's monetary policy, and that often also includes issuing and/or monitoring the currency and regulating the money supply. Central banks also typically act as a lender of last resort to banks in times of financial crisis, and may also supervise and regulate banks and other financial institutions. Examples of central banks include the Federal Reserve in the United States, the European Central Bank, and the Bank of Japan.The chief task Read this Term is to make sure period of high inflation is only temporary; important we succeed
• Acknowledge interest rate effects felt unevenly across community, but not a reason to avoid using them
• If we had not tightened policy, the cost of living would be higher for longer
• Desire to preserve job market gains does not mean board will tolerate higher inflation persisting
• Path back to 2–3% inflation is likely to involve a couple of years of relatively slow growth