SYDNEY (Reuters) – Australia’s central bank hiked rates in June because of upside inflation risks to an already drawn-out return of inflation to target, Governor Philip Lowe said on Wednesday, after raising interest rates to an 11-year high of 4.1%.
Some further tightening may still be required to bring inflation to heel, Reserve Bank of Australia (RBA)’s Lowe said at the Morgan Stanley Australia Summit in Sydney.
“It is too early to declare victory in the battle against inflation,” said Lowe, adding that the narrow path the central bank was trying to achieve was likely to be bumpy.
(Reporting by Stella Qiu; Editing by Himani Sarkar)
