The governor of the Reserve Bank of Australia, Michele Bullock, says there is a “live” chance of a rate hike in two weeks’ time, as the central bank frets that a “prolonged” oil price spike as a result of the attacks on Iran will make it harder to bring inflation under control.
Investors and economists had largely discounted the chance of a move at the upcoming board meeting on 16-17 March, believing that the RBA would wait for the next quarterly inflation report before a likely hike in May.
