Iran war intensifies inflation, Reserve Bank of Australia may raise interest rates consecutively

Golden Ten Data reported on March 16 that the Reserve Bank of Australia will hold its second interest rate meeting of the year this week. Due to the surge in energy prices caused by the Middle East conflict, the country's existing inflation problem has further intensified. Economists expect that, in response to rising oil prices potentially pushing up costs, the bank will raise interest rates on Tuesday, increasing the cash rate to 4.1%. The currency market believes there is a 75% probability of a rate hike in March and expects further tightening in the future. Bank of America economist Nick Steiner stated: "The Iran conflict brings significant upside risks to inflation, and we expect the overall inflation rate to approach 5%." Australia's inflation target is 2-3%. Steiner pointed out that, given the current price pressures and tight labor market, the central bank has "almost no room to maneuver." If there is no rate hike in March, "it could lead to more severe tightening later, as high inflation will persist longer and affect public expectations."