Business News

Why does the RBA keep hiking interest rates? It's scared it can't contain inflation

Written by Peter Martin, Visiting Fellow, Crawford School of Public Policy, Australian National University

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There are signs inflation pressures are easing. Oil prices are down almost 20% on their peak in March. They’ve been falling consistently for a month.

The average capital city unleaded price is down from A$2.11 per litre in early July to a more bearable $1.74.

The money market is pricing in much lower inflation than we presently...

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