SYDNEY, March 17, 2026 (BSS/AFP) - Australia's central bank hiked its key interest rate Tuesday, pointing to "sharply higher fuel prices" driven by the US-Israel war on Iran. Many economists have warned that a protracted war could fuel an inflation shock similar to that seen after Russia's 2022 invasion of Ukraine. The RBA said "the conflict in the Middle East has resulted in sharply higher fuel prices, which, if sustained, will add to inflation". "Higher prices and prolonged uncertainty may cause growth to be lower in Australia's major trading partners and also in Australia," the bank said in a statement. Australia is heavily reliant on fuel imports from Asia, with many people accustomed to driving long distances for work or leisure.

Source: Bangladesh Sangbad Sangstha March 17, 2026 04:28 UTC