Australia's Central Bank to 'Do What's Necessary' to Hit Inflation Target

The transcript discusses the Reserve Bank's hawkish stance on interest rates, with expectations of a 50 basis point increase in the coming months due to inflation concerns. Governor Phil Low's rare interview highlighted the need to control inflation, with predictions of it decreasing in 2023. Economists are leaning towards a hawkish outlook, anticipating back-to-back rate hikes. Despite high household debt, the Governor believes the Australian economy is resilient enough to handle these changes, citing strong household savings and loan repayment buffers.

What is the expected peak inflation rate by the end of the year according to the governor's interview?

• 7%

• 8%

• 6%

• 5%

What is the anticipated interest rate increase by economists following the governor's interview?

• 100 basis points

• 25 basis points

• 50 basis points

• 75 basis points

How does the Reserve Bank's current approach to interest rates compare to last year?

• No change in approach

• Gradual tightening

• Rapid tightening

• Loosening of rates

What is the household debt to income ratio in Australia?

• 150%

• 170%

• 186%

• 200%

What factor does the governor cite as a reason for confidence in the economy's ability to handle rate hikes?

• Government subsidies

• Low unemployment

• High household savings

• Strong export market