RBA Faces 'Challenging' Inflation Outlook Amid Global Pressures
The Reserve Bank of Australia is facing a challenging situation as it approaches its next interest rate decision. The bank's chief economist, Sarah Hunter, pointed to rising inflation pressures from the Middle East and globally.
The escalating conflict in the Middle East has pushed up energy costs, which are expected to flow through to households and businesses. Oil prices broke the $US100 a barrel barrier last week after Iranian attacks on tankers passing through the Strait of Hormuz.
The Reserve Bank is also concerned about the broader global environment being more inflationary due to the scramble for tech components caused by the AI boom. 'Anyone who's bought a new iPhone recently might have noticed that the price went up quite a bit,' Dr Hunter said.