An ex-Reserve Bank of Australia governor, Ian Macfarlane:
- Says he would be surprised if the CPU 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
Ian Macfarlane was Governor from 1996 to 2006.
