Reserve Bank governor Michele Bullock usually adopts a soothing tone when she fronts the media. Not so on Tuesday afternoon, after she lifted interest rates to 4.35%.
“It is tough and we’re staring down the barrel,” Bullock said.
While the hike was widely expected, as was the sharp upward revision to near-term inflation, Bullock is acutely aware the conflict in the Middle East could worsen. And the RBA’s powers only extend so far.
“Australians are poorer because of this shock … and there is no way out of that,” Bullock said, refusing to shy away from the difficulties ahead.
Before the ink was even dry on the RBA’s new forecasts, the US-Iran conflict was escalating. Markets fell 0.19% today amid renewed fears about the crisis.
