Original article by Patrick Commins
The Australian – Page: 1 & 4 : 7-Jun-23

Reserve Bank of Australia governor Philip Lowe has defended the decision to increase the case rate by 25 basis points to 4.1 per cent on Tuesday. He says the 12th rate rise since May 2022 was necessary to provide greater confidence that inflation will return to the target range within a reasonable timeframe. He also cautioned that further rate rises may be needed, depending on the outlook for the economy and inflation. The Australian Chamber of Commerce & Industry contends that the recent 5.75 per cent increase in the minimum wage had forced the RBA’s hand. However, Treasurer Jim Chalmers rejects suggestions that the minimum wage increase and the federal government’s 9 May budget were to blame for the latest rate rise. The cash rate is now at its highest level since April 2012.

CORPORATES
RESERVE BANK OF AUSTRALIA, AUSTRALIAN CHAMBER OF COMMERCE AND INDUSTRY, AUSTRALIA. DEPT OF THE TREASURY