Reserve Bank’s grim rates warning as oil prices spike
THE Reserve Bank might have to raise interest rates if inflation is higher than expected as oil prices surge back towards $US100 a barrel. More attacks on oil tankers in the Strait of Hormuz drove Brent crude above $US97 a barrel, which will seep into domestic petrol and diesel prices and broader cost pressures for businesses. Russel Chesler, VanEck’s head of investments and capital markets, expects oil prices to stay higher for longer. “The continuing Middle East conflict is showing no signs of a resolution and that will leave the RBA with no choice but to increase rates