RBA warns higher interest rates could be the new normal

The Reserve Bank governor has cautioned that interest rates are likely to remain elevated for some time, with another increase anticipated next week. This signals a shift towards keeping rates higher for longer, which could impact consumer spending and borrowing costs. The warning reflects ongoing economic challenges and underscores the bank's commitment to controlling inflation, which has significant implications for both businesses and everyday Australians. This move suggests a more cautious approach to economic recovery and financial planning ahead.