Judo Bank: Reserve Bank of Australia Still Assessing Whether Fuel Price Shock Will Persist

The Reserve Bank of Australia remains uneasy about the inflation outlook and is keeping the option open for further interest-rate increases, according to an economist at Judo Bank.

According to Jin10, Judo Bank economic adviser Warren Hogan said the central bank is still evaluating whether the impact from fuel prices will have a lasting effect.

Hogan said that despite an escalation in the Iran conflict, Brent crude rose only slightly to $77 a barrel. He added that market pricing suggests investors expect any supply disruption to be contained rather than prolonged.

However, Hogan said the Reserve Bank of Australia wants greater confidence that the fuel shock will not have a more persistent impact, and that this level of confidence has not yet been reached.