U.S Interest Rate Hikes Could Worsen Inflation in Australia: Aussie TreasurerAustralian Treasurer Jim Chalmers is concerned about a potential rise in the country’s inflation rate caused by the aggressive interest rate hikes in the United States.
Speaking to reporters before heading to Washington to attend the annual International Monetary Fund (IMF) meeting, the treasurer said the gap between the interest rates in the two countries could fan inflation in Australia.
“When there’s a big and widening gap between U.S. interest rates and Australia, which is putting downward pressure on our currency, that makes imports more expensive,” he said.
“And that has implications for inflation.”
Australia’s official cash rate currently stands at 2.6 percent after the Reserve Bank of Australia slowed down its interest rate hike cycle in October....
Source: U.S Interest Rate Hikes Could Worsen Inflation in Australia: Aussie Treasurer (https://www.theepochtimes.com/u-s-interest-rate-hikes-could-worsen-inflation-in-australia-aussie-treasurer_4790101.html)
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