Lowe: Time For Ultra-Low Rates Is Behind Us

"For inflation to return to the 2–3 per cent target range, a more sustainable balance between demand and supply is needed. Higher interest rates will help achieve this through moderating growth in aggregate demand. With the COVID emergency now over, so too is the time for emergency settings of monetary policy. The RBA was patient in withdrawing the insurance that was put in place during the pandemic. We wanted to ensure a robust recovery and we were very aware that our main policy instrument – the cash rate – was at the effective lower bound. That robust recovery has taken place and the time for ultra-low interest rates is now behind us given that inflation is high and the labour market is very tight."

• "In light of this assessment, the Reserve Bank Board has increased the cash rate by 125 basis points over the past three meetings to 1.35 per cent and expects that further increases will be required over the months ahead. These increases will help establish a more sustainable balance between demand and supply in the Australian economy."