Governor Philip Lowe of the Reserve Bank has signalled another possible interest rate hike, reinforcing his zero-tolerance policy towards high inflation.

Over the past year, the Reserve Bank has raised the cash rate eleven times, pushing it to the current 3.85 percent from a mere 0.2 percent.

Despite inflation beginning a downward trend, Lowe suggests he might yet raise rates further, a move that could cause significant public discontent.

Hear more highlights from Drive with Chris O’Keefe below: