RBA warns public trust in inflation fight is eroding

Reserve Bank of Australia officials say public confidence in controlling inflation is weakening. Deputy Governor Andrew Hauser warns a loss of trust makes lowering prices costlier.

Pedestrians walk past the Reserve Bank of Australia building in central Sydney, Australia, February 10, 2017. REUTERS/Steven Saphore

Public confidence in Australia's central bank to control inflation is eroding, risking higher costs to tame price pressures. The warning follows a rate hike that brought borrowing costs to an 18-year high.