RBA’s Lowe: Aggressive rate hikes result in higher unemployment

Reserve Bank of Australia (RBA) Governor Philip Lowe adds more comments while speaking in front of the House of Representatives Standing Committee on Economics.

After initially citing fears of higher inflation and readiness to lift the rates, the policymaker defended the latest status quo by citing the fears of raising rates too quickly to push inflation toward the target. The policymakers said that such a step would have resulted in higher unemployment.

Also read: RBA’s Lowe: Some further tightening required to ensure inflation returns to target within reasonable timeframe

RBA’s Lowe also said, per Reuters, “To get inflation to target in 2024 would require substantially higher rates, not in the national interest.”

Market reaction

AUD/USD picks up bids to pare recent losses by printing mild gains around 0.6520 by the press time.

Also read: AUUD/USD holds steady above 0.6500 mark, seems vulnerable near two-month low