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The Guardian - AU

National

Patrick Commins

What if the next move in interest rates is up? Australia’s shock inflation news raises an unwelcome question

Inflation RBA Interest Rates Richard Yetsenga Economy

A For Sale sign outside a house in Sydney, Australia — An interest rate cut before Christmas had seemed reasonable ‘but that’s not on the cards any more’, one economist says. Photograph: Dan Himbrechts/AAP

There’s a new and unwelcome question being kicked around in offices, cafes and kitchens: what if the next move in interest rates is up?

Two weeks ago we got news that unemployment had jumped and it seemed the Reserve Bank of Australia was a sure thing to cut rates on Melbourne Cup day.

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