Ex-governor knocks RBA as rates hit 12-year high

Bernie Fraser, a former governor of the Reserve Bank of Australia, has spoken out against the decision to raise rates to a fresh 12-year high.

In a highly unusual move, Fraser told ABC News, an Australian broadcaster, that there was no need for the Reserve Bank's quarter-point hike, which brings rates to 7.25% - their highest level since July 1996.

Fraser said that the slowdown in the US, the lack of credit and flagging consumer confidence was tempering inflation, making conditions less bad t