‘A very high number’: Reserve Bank of Australia governor expects inflation to hit 7% by end of year

Philip Lowe says he is confident inflation can be brought back to 2-3% target range but it's going to take time'

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The Reserve Bank governor, Philip Lowe, has warned Australians to be prepared for higher interest rates, saying inflation will likely reach 7% by the end of the year and it must be brought under control.

In his first public appearance since the RBA raised the cash rate by a larger than expected 50 basis points at last week's board meeting, Lowe said on Tuesday night he was predicting inflation to rise to 7%. That compares with current inflation of 5.1%.