The RBA says there is ‘excess demand’ in the economy. Households doing it tough might disagree | Greg Jericho

AI desk brief

The RBA raised interest rates and lifted its inflation forecast for June next year to 3.7% from 2.8%, while revising its December oil assumption to US$109.50 a barrel from US$81.20. The article reports oil fell 11% on Iran peace-talk news before rebounding after US strikes on Qeshm Island. Columnist Greg Jericho argues energy costs, rather than excess demand, explain the inflation deterioration and that tightening risks unnecessary economic damage. For gold, prolonged conflict could support haven demand, but the inflation-policy response leaves the net price implication uncertain; nominal rate increases alone do not establish higher real yields.