RBA may hold again, but we are not in the clear: RMIT expert

Bilgehan Karabay, Associate Professor, Economics

Topics: RBA, interest rates, cost of living

"While RBA is expected to keep the rates intact this time, there are many other factors at play denying us any reprieve from cost of living pressures.  

“Oil and energy prices continue to increase, so we will likely see a spike in inflation again.  

“The tight rental market also implies that rental prices will continue to put pressure on inflation.  

“In the US, markets see the possibility of another rate hike until the end of this year and there is no expectation for any rate cut in the near future.  

“Other economies, including Australia, also face the same risk.  

“The Australian dollar recently depreciated against the US dollar, which could create further inflationary pressures through our imports.”

Associate Professor Bilgehan Karabay researches international trade, with a specific focus on the political economy of trade policy and international agreements. His research also covers the economics of information and uncertainty. Prior to starting his academic career, Bilgehan worked at the Central Bank of the Republic of Turkey as an economist.   

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Interviews: RMIT External Affairs and Media, 0439 704 077 or news@rmit.edu.au