Reply To: RBA Accelerates Rate Cycle as it Raises Rates by 50bps to 0.85%


Ex-Reserve Bank of Australia governor, Ian Macfarlane:

Says he would be surprised if the CPI fell back to 2%
Says there is enough scarcity in Australia and in the US to keep the rate of inflation high
Thus he expects interest rates to rise sharply in order to fight inflation, the 50bp hike yesterday was the correct decision