Why the RBA is predicted to deliver a third straight interest rate hike this week

While interest rate rises can’t affect the surging price of oil caused by Middle East turmoil, they are still the Reserve Bank’s best – and only – tool to fight inflation

One economist is calling it the “Hormuz hike”.

There’s a nearly 80% chance that the Reserve Bank will deliver a third straight interest rate rise on Tuesday, according to financial markets.

Patrick Commins is Guardian Australia’s economics editor

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