Philip Lowe warns rate hikes may not be over

Former Reserve Bank governor Philip Lowe is warning interest rates may not have reached their peak. Speaking to the Financial Review, Mr Lowe believes the fight against inflation is not done and claims any upside surprises would make the RBA more likely to increase the case rate. Rates are not expected to rise at the next meeting. Money market investors believe there is a 40 per cent chance of a 0.25 per cent increase by September. Westpac has also weighed in on the debate in its first half results – saying interest rates are likely to stay “higher for longer”.