RBA Warns of Imminent Rate Hike Amid Rising Inflation Fears
The Reserve Bank of Australia (RBA) is warning that inflation may be worse than expected, and another interest rate hike could be imminent. RBA governor Michele Bullock told a parliamentary hearing in Canberra that developments since the last meeting in August suggest some upside risks to inflation are materializing.
Bullock stated that 'developments since then suggest that, although growth in the Australian economy is slowing, some of these upside risks to inflation appear to be materialising.' She added that the bottom line is that they need to get inflation back down because if they don't, it's a worse outcome across the board.
The Iran war has pushed up energy prices, and Brent crude is currently above $US104 per barrel. Commonwealth Bank head of commodities Vivek Dhar warned that prices could rise as high as $US150 a barrel due to dwindling global oil supplies.