Aussies Face Petrol, Interest Rate Hikes

0:00In Sydney, it's March 11, and here's what is going on. Australians are facing a double hit from record high petrol prices and a likely interest rate rise next week. Economists from major banks now predict the reserve bank will lift the cash rate to 4.1% at its meeting ending Tuesday. This comes as inflation stays sticky at 3.8%, well above the 2-3% target. Several costs have surged, averaging $2.18 a liter in Sydney and Brisbane, $2.16 in Melbourne, and similar, highs elsewhere. That pushes weekly fuel bills for a typical household past $73 of nearly 25% since February. The reserve bank's deputy governor recently highlighted limited spare capacity in the economy and upside risks from climbing energy prices. Several oil bench marks, like Brent Crude, have jumped 40% this year amid tensions, though they've pulled back from recent peaks near one, $120 a barrel. Financial markets reacted quickly, now pricing in a 64% chance of consecutive hikes after

1:04February's move. The Australian dollar even strengthened to 71 U.S. since despite overseas market jitters. Board members face a tough debate on whether to tighten policy further, weighing high inflation against potential global slowdowns from energy shocks. Millions with mortgages could see repayments climb, adding pressure amid the fuel pain. This episode is proudly sponsored by our partner. A pillow that plays your podcast, music, or white noise privately, no earbuds required, so L.I. SoleyPillow.com