In his first appearance after the 50 bps June interest rate hike, Reserve Bank of Australia (RBA) Governor Dr. Phillip Lowe warned that Australians should be ready for significant interest rate hikes in the balance of this year.

Key quotes

 “The RBA would do "what's necessary" to get inflation back to between 2 to 3 percent.”

"It's unclear at the moment how far interest rates will need to go up to get that." 

"I'm confident that inflation will come down over time but we'll have to have higher interest rates to get that outcome."

it was "reasonable" to think interest rates would reach about 2.5 percent at some point.” 

"I say that because the midpoint of our inflation target is 2.5 percent, so an interest rate of 2.5 percent in inflation-adjusted terms is really an interest rate of zero, which in historical terms is a very low number.”

"How fast we get to 2.5 percent, indeed whether we get to 2.5 percent, is going to be determined by events."