Interest rates are being increased solely to support the AUD. Higher interest rates won't have any significant effect on inflation caused by supply constraints and bottlenecks (which anyhow will gradually improve). A higher AUD reduces inflation caused by higher prices for imported goods and services, including energy costs linked to overseas prices.
Interest rates are being increased solely to support the AUD. Higher interest rates won't have any significant effect on inflation caused by supply constraints and bottlenecks (which anyhow will gradually improve). A higher AUD reduces inflation caused by higher prices for imported goods and services, including energy costs linked to overseas prices.