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Why has the RBA raised interest rates for a record 7th straight month? High inflation – and worse is on the way

  • Written by: Peter Martin, Visiting Fellow, Crawford School of Public Policy, Australian National University

Pushing up interest rates isn’t something the Reserve Bank does lightly.

But what’s worrying the Reserve Bank – and why it increased interest rates for a record seventh consecutive month on Melbourne Cup Tuesday – is that inflation seems to become completely detached from the bank’s target band.

That target band of 2-3%...

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