RBA May Hike Rates Next Week

0:00From the Daily News Now Network, this is Sydney News Today. The Reserve Bank of Australia could raise interest rates as soon as next week, thanks to surging oil prices from the war in Iran. Deputy Governor Andrew Halzer called it a clear inflation risk, warning that letting prices run hot can make consumers and businesses expect, constant hikes. The bank's policy board meets Monday and Tuesday to decide. Markets now see about a one and three chance of a quarter percentage point increase, up from expectations of waiting until early May. Halzer noted inflation is forecast to hit 4.2 percent mid-year and could climb higher with oil volatility. Barrowers are bracing for pain as the hike would push the cash rate from 3.85 percent to 4.1 percent. Halzer stressed how toxic runaway inflation can be, drawing from recent history but also cautioned against overreacting which might slow the economy and boost unemployment. Oil prices swung wildly Monday, peaking near 120 US dollars of barrel

1:02before dropping below 90. Most data since February's rate rise has beaten forecasts, though consumer spending softened a bit. Bank of America became the first major forecaster to predict a hike next week, citing the tight job market and persistent inflation pressures. Officials are walking a fine line between curbing prices and avoiding economic harm. This story is made possible by our sponsor. You know what is better than earbuds in bed? No earbuds at all. S-O-L-I-SOL-PILO.com