Danger zone: why war in the Middle East has landed the RBA’s inflation fight in tricky territory
News Source
•Tue, 29 Sep 2026 09:13:01 GMT
📰 What Happened
An analysis says the Reserve Bank's fight against inflation has entered a more dangerous phase. The bank raised rates for the fourth time this year on Tuesday.
Governor Michele Bullock defended the bank's careful approach. She said unemployment is still low at 4.6%, but inflation has been above target for six years. The analysis was published on 29 September 2026.
🔍 The Backstory
The bank aims to bring inflation back to its 2.5% target. It has tried to do this slowly while keeping as many jobs as possible, and has been above the 2-3% range for six years.
War in the Middle East closed the Strait of Hormuz and pushed up world fuel prices. That made the inflation problem harder to solve.
🎯 Why It Matters
Higher rates mean bigger loan repayments for families. The analysis explains why the bank may keep raising them.
An analysis says the Reserve Bank's fight against inflation has entered a more dangerous phase. The bank raised rates for the fourth time this year on Tuesday.
Governor Michele Bullock defended the bank's careful approach. She said unemployment is still low at 4.6%, but inflation has been above target for six years. The analysis was published on 29 September 2026.
The bank aims to bring inflation back to its 2.5% target. It has tried to do this slowly while keeping as many jobs as possible, and has been above the 2-3% range for six years.
War in the Middle East closed the Strait of Hormuz and pushed up world fuel prices. That made the inflation problem harder to solve.
Higher rates mean bigger loan repayments for families. The analysis explains why the bank may keep raising them.