Home›Bonds & Rates›Central Banks›RBA raises cash rate to 4.6% amid inflation debate tie…

RBA raises cash rate to 4.6% amid inflation debate tied to petrol

Greg Jericho argues that without petrol price increases linked to the war on Iran, August inflation would have fallen, even as the RBA targets both stable inflation and full employment.

Reported · Written up by our desk · Central Banks

Australia’s Reserve Bank has raised the cash rate to 4.6%, continuing a campaign of tighter policy while the country debates whether higher fuel prices are worsening inflation, according to the Guardian Economics.

The piece notes the RBA’s legislation sets a dual mandate to maintain price stability and full employment in Australia, but argues that the focus on unemployment appears limited as officials raise rates and recession concerns grow.

Greg Jericho writes that, without petrol price increases driven by the war on Iran, inflation in August would have fallen, framing fuel costs as a key driver of the inflation challenge.

The article also references RBA governor Michele Bullock’s press conference and a comment from ABC’s Alan Kohler during Afternoon Briefing about how “full e,” in the paper’s framing, is being treated as rates rise to 4.6%.

More like this

Sources