According to Sarah Hunter, assistant governor of the Reserve Bank of Australia, the RBA anticipates that inflation will rise more than previously anticipated due to rising oil prices brought on by the Middle East crisis.
Hunter clarified in a speech and interview that the RBA is concentrating on three factors: the risk of growing inflation expectations, the economy’s solid beginning position, and the direct and indirect effects of oil prices.
According to the RBA’s most recent projections, the conflict will shortly end and oil prices would return to about US$82 per barrel in the second half of 2026.
