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Australia central bank hikes rates to 10-month high as Iran war stokes inflation risk
The Reserve Bank of Australia increased the cash rate to 4.1% due to inflation above target and rising fuel prices from Middle East conflict, adding about $100 monthly to mortgage repayments.
- On Tuesday, March 17, 2026, the Reserve Bank of Australia board voted 5-4 to raise the official cash rate by 25 basis points to 4.1 percent, marking the second consecutive monthly increase.
- The RBA Board judged that a tightened labour market and capacity pressures were greater than previously assessed, maintaining inflation was already too high before Middle East conflict drove crude oil prices higher.
- Escalating conflict in the Middle East has driven crude oil prices to about $US103 a barrel since late February, with the bank warning that prolonged uncertainty could increase inflation expectations and impair supply capacity.
- Mortgage holders with $600,000 in debt face about $181 in additional monthly repayments, according to Canstar modelling, as Treasurer Jim Chalmers called the hike "really tough news" for struggling households.
- Shadow Treasurer Tim Wilson accused Labor of "pouring debt petrol on the inflation fire," claiming government spending caused the crisis, while analysts expect potential further rate hikes if geopolitical risks persist.
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Australia Delivers First Back-to-Back Rate Hikes Since Mid-2023
Australia’s central bank raised its key interest rate for a second straight meeting on Tuesday, stepping up its battle against stubborn inflation as rising energy costs from the widening war in Iran threaten to intensify price pressures.
·United States
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The central bank anticipates persistent inflation due to the high oil prices and raises the key interest rates for the second time in a row. Interest rate traders expect even more steps.
·Düsseldorf, Germany
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Coverage Details
Total News Sources92
Leaning Left49Leaning Right5Center5Last UpdatedBias Distribution83% Left
Bias Distribution
- 83% of the sources lean Left
83% Left
L 83%
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