The latest comments from the Governor of the Reserve Bank of Australia (RBA), Philip Lowe have added more hurt to Aussie dollar trading in the Asian session.
In a speech in Sydney on Thursday, Governor Philip Lowe reiterated that further interest rate hikes are needed to tame inflation that has soared to near 50-year highs.
However, he recognizes that the case for a slower rate of increase in interest rates becomes stronger as the cash rate level rises.
Even so, he did not say how many rates should be implemented, saying instead that the level and pace of tightening will be driven by incoming data and the outlook for inflation and the labor market.
The remarks came after the central bank raised interest rates by 50 basis points on Tuesday, taking the cash rate to a 7-year high of 2.35%.
In addition, he also warned that a sharp slowdown in global growth would make the RBA's task of avoiding a recession in Australia more difficult.
Lowe's comments, which were seen as contrasting with the heads of other major central banks, prompted the Aussie dollar to continue its decline in the Asian trading session.
