Interest Rates Need to Rise to Fight the ‘Evil of Inflation’: Reserve Bank of Australia

Governor of the Reserve Bank of Australia Philip Lowe makes a speech in Sydney, Australia, on March 19, 2020. Brendon Thorne/Getty Images

The Reserve Bank of Australia (RBA) has warned that interest rates need to go higher amid the current cost of living crisis to rein in inflation and avoid the risk of recession.

In a speech to the Reserve Bank Board dinner in Hobart, Philip Lowe, the governor of the RBA, said the bank “will do what is necessary” to return inflation back to sustainable levels.