EconomyDanger zone: why the Middle East war has put the RBA’s inflation fight on tricky ground

After delivering its fourth interest rate hike of the year, Reserve Bank of Australia governor Michele Bullock said the bank still aims to bring inflation back to its 2.5% target while preserving jobs. But the prolonged Middle East conflict has kept fuel, fertiliser and transport costs higher, raising the prospect of further price rises, tougher rate increases and a dramatic economic slowdown.

Reserve Bank of Australiainflationinterest ratesMiddle East conflict

TThe Guardian★★★☆☆2026-09-29 09:13Original