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Rate rise could be just the start, as Trump’s war turns desperate
The Reserve Bank’s expected decision to raise rates on Tuesday is likely to be just the beginning of protracted pain for Australia as petrol prices compound its domestic inflation problem.
The Reserve Bank had plenty of inflation worries well before the US and Israel decided to trigger a global economic crisis. Now the Iran war weighs even more heavily on the central bank’s unpopular role as Australia’s financial disciplinarian.
Inflation has been climbing rather than falling, with headline annual inflation at 3.8 per cent and the spike in oil prices certain to drive that higher.
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Australians brace for interest rates call
The Reserve Bank of Australia has met ahead of announcing whether it will hike up interest rates again
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