RBA ‘will not hesitate’ to raise interest rates again to combat inflation, Michele Bullock warns

Reserve Bank governor Michele Bullock says expectations for when inflation will come back to target have been pushed out. Photograph: Steven Markham/AAP

Reserve Bank governor Michele Bullock said the central bank won’t hesitate to lift interest rates again to reduce “persistently high inflation” while acknowledging “I know this is not what people want to hear”.

In a speech on Thursday in the northern New South Wales town of Armidale, Bullock also talked up the need for more investment in renewable energy zones, noting these would account for half of electricity generation in coming decades.