Will the RBA follow the US Fed in lifting interest rates despite banking turmoil?

‘Interest rate rises exposed a fundamental problem – the creation by central banks of an economy and financial system built around artificially cheap money.’ Photograph: Steven Saphore/Reuters

An unsteady global financial sector has ratcheted up pressure on the Reserve Bank of Australia ahead of next month’s rate decision.

Facing the worst banking crisis since 2008, as well as record high inflation, the US central bank on Wednesday chose to continue its spree of rate hikes, raising interest rates by 0.25% – an uneasy compromise – but signalled that it may soon pause increases. Earlier in March, the European Central Bank raised its interest rate by 0.50%.