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The Times

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

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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