Overview
- The RBA, which raised the cash rate to 4.35% on Tuesday, said the increase gives it room to judge how the Middle East oil shock is feeding into prices.
- The bank released three paths for the economy that hinge on the Strait of Hormuz, a key Gulf shipping lane, with adverse cases showing inflation above 5% and unemployment near 5.1%.
- Bullock cautioned that new household payments or fuel-tax cuts would lift demand and could force tighter policy to bring inflation down.
- Major banks split on the next move, with NAB and Westpac tipping another rise in June while Commonwealth Bank and ANZ expect a hold, and all four lenders are passing the latest hike to borrowers.
- Prime Minister Anthony Albanese announced a $10 billion near‑term fuel and fertiliser security plan ahead of the budget as the government signals restraint on broader spending.