Danger zone: why war in the Middle East has landed the RBA’s inflation fight in tricky territory

The governor of the Reserve Bank of Australia, Michele Bullock, speaking to media after the board raised the official interest rate to the highest level in 15 years. Photograph: Sarah Wilson/AAP The governor of the Reserve Bank of Australia, Michele Bullock, speaking to media after the board raised the official interest rate to the highest level in 15 years. Photograph: Sarah Wilson/AAP Reserve Bank of Australia Analysis Danger zone: why war in the Middle East has landed the RBA’s inflation fight in tricky territory Patrick Commins The Reserve Bank appears ready to push harder against inflation but it comes with a greater risk for the economy

The fight against inflation has entered a new, more dangerous phase.

For years, the Reserve Bank has been attempting, as gently as possible, to steer inflation back to its 2.5% target while trying to retain as many of the post-pandemic job gains as possible.