Australian households face prospect of interest rate hike and petrol prices rising above $2 a litre

Global crude oil prices have surged back above $US100 a barrel, fueled by the escalating Middle East crisis, and Australian households are bracing for the consequences. Economists are sounding the alarm, warning that rising petrol prices could push costs above $2 a litre, and that the Reserve Bank may be forced to implement a fourth interest rate hike in the coming weeks. As financial markets increasingly predict a cash rate increase at the next RBA meeting on August 11, Australian families are facing the prospect of higher mortgage repayments and increased living expenses. With the global energy market on high alert, Australians can expect a significant impact on their daily lives, from the pump to their pocketbook.

Economists’ warning comes as escalating Middle East crisis pushes global crude oil back above $US100 a barrelGet our breaking news email, free app or daily news podcastAustralian households face the prospect of a Reserve Bank interest rate hike and petrol prices above $2 a litre over the coming weeks, economists warn, as the escalating Middle East crisis pushes global crude back above $US100 a barrel.Financial markets now see an even chance the RBA board will deliver a fourth cash rate increase at the next meeting on 11 August. Continue reading...