RBA Meets Amid Oil Crisis, Rate Hikes Likely

0:00It's March 15th, here's your Sydney news in two minutes. The Reserve Bank of Australia's board meets today as Brent Crude Oil tops $100 a barrel thanks to the war in the Middle East closing. The entrance to the Persian Gulf for the first time ever. Higher energy costs are hitting petrol prices hard and inflation could climb next. Most economists expect the bank to raise interest rates tomorrow anyway with markets pricing in a 72% chance. Higher banks like the RBA focus mainly on taming inflation through higher rates and tough talk, even if it risks jobs. Full employment takes a back seat. This crisis has no real precedent. The international energy agency calls it the biggest oil supply shock in history, worst in the 1970s. Crisis. Iran's new leader says the straight-of-form moves stay shut until the war ends, while the U.S. claims it can stop any time. Iran's forces insist they control the timeline and block all Gulf oil exports amid attacks.

1:00Questions linger on how long Iran can hold out without its own oil flowing freely. The wars link depends on whether the U.S. and Israel escalate to invasion, which experts call unlikely due to Iran's size. It could spread to neighbors like Gulf states or Turkey, complicating peace talks. Damage to oil facilities might drag economic pain into the future. In Australia, this means steeper fuel bills worsening the cost of living squeeze from inflation and housing. Expect at least two more rate hikes, maybe three by November, pushing the cash rate toward 4.55%. The bank won't ignore it this time to avoid locking in higher inflation expectations. Deanin is brought to you by our sponsor. Press play. Put your head down. The sound is already there. S.O.L.I. SoleyPillo.com