Multiple rate hikes needed to combat inflation, says Warren Hogan | The Business

Summary

Financial markets are pricing in a fifth Reserve Bank interest rate hike on Melbourne Cup Day. Worse-than-expected inflation data last week all but sealed the deal on extra mortgage pain for borrowers and it's still unclear how high interest rates need to rise for the Reserve Bank to achieve its inflation target of 2.5 per cent. Judo Bank economic advisor Warren Hogan says interest rates may actually be too low to effectively combat inflation and he's forecasting further hikes in 2027. "The reality for the Reserve Bank Board is that they do have a mandate to not only keep unemployment as low…

Description from ABC News (Australia).