The RBA hoped this year’s three interest rate rises would tame inflation – but nothing is going their way
The Reserve Bank of Australia (RBA) is struggling to curb inflation despite three interest rate hikes this year. External factors, including rising global oil prices and increased data center investment, are complicating the bank's efforts to reach its 2.5% target.
Why it matters
The ongoing cost-of-living crisis and the RBA's inability to control inflation are causing significant economic strain and public frustration in Australia.
Fuel prices are rising again in Australia, with petrol nearing $2.10 a litre and diesel passing $2.50. Photograph: Joel Carrett/AAP Fuel prices are rising again in Australia, with petrol nearing $2.10 a litre and diesel passing $2.50. Photograph: Joel Carrett/AAP Australian economy Analysis The RBA hoped this year’s three interest rate rises would tame inflation – but nothing is going their way Patrick Commins Economics editor The breakdown of the US-Iran ceasefire, rising oil prices and the explosion in data centre investment are making the central bank’s task harder
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For five years the Reserve Bank has been trying to wrangle inflation back to its 2.5% target, and for years it has essentially failed.
The result is a cost of living crisis that has generated intense community grievance.
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