{"text":[[{"start":7.1,"text":"Australia’s central bank has raised interest rates for a third time this year, bucking a trend among global peers as it fights inflationary pressures intensified by the conflict in the Middle East. "}],[{"start":18.7,"text":"The Reserve Bank of Australia on Tuesday raised its borrowing rate to 4.35 per cent. The move, its third consecutive rise, undid the effect of three cuts last year."}],[{"start":31.049999999999997,"text":"“The conflict in the Middle East has resulted in sharply higher fuel and related commodity prices, which are already adding to inflation,” the bank said in a statement."}],[{"start":40.9,"text":"It added that there were “early signs that many firms experiencing cost pressures are looking to increase prices of their goods and services”."}],[{"start":50.65,"text":"The Australian dollar weakened 0.3 per cent against the US dollar while the S&P/ASX 200 stock index slid 0.2 per cent."}],[{"start":60.05,"text":"The RBA has been an outlier this year, as the US Federal Reserve, Bank of England and other prominent central banks have opted to hold rates as they weigh an uncertain economic outlook as a result of the US-Israeli war on Iran and a surge in global fuel prices."}],[{"start":76.65,"text":"At the RBA’s last meeting in February, the rate-setting committee unanimously voted to raise rates by 0.25 percentage points to 3.85 per cent. Eight of the nine committee members voted to raise rates again."}],[{"start":90.35000000000001,"text":"RBA governor Michele Bullock said at a press conference that the war in Iran was “a shock that makes us poorer”, adding: “It has made a trade-off for us much worse for any given inflation rate.”"}],[{"start":101.95,"text":"Inflation data released last week showed the consumer price index rose 4.6 per cent in the year to March. Annual goods inflation was 5.5 per cent, driven by a 24 per cent increase in the cost of automotive fuel."}],[{"start":115.95,"text":"The “trimmed mean”, which excludes volatile items and is preferred by the RBA, was stable at 3.3 per cent but remained above the central bank’s target band of 2 to 3 per cent."}],[{"start":128.3,"text":"In its outlook, the RBA warned that a “longer or more severe conflict” in the Middle East could pile “further upward pressure” on inflation. “Higher prices and prolonged uncertainty may cause growth to be lower in Australia’s major trading partners and also in Australia,” the bank added."}],[{"start":145.25,"text":"Asian economies — many of which rely on oil and natural gas shipments from the Middle East — have been particularly affected by the closure of the Strait of Hormuz. Australia has been able to secure fuel for transport, mining and agriculture thanks to its status as a major supplier of liquefied natural gas to the region."}],[{"start":164.3,"text":"Treasurer Jim Chalmers is set to deliver a budget next month that is expected to include some tax reforms and measures to address the cost of living."}],[{"start":173.25,"text":"But economists have warned that any cost of living support in an attempt to tame inflation could prove counter-productive. The government in late March temporarily slashed a fuel excise in order to shield Australian drivers from surging petrol prices."}],[{"start":188.15,"text":"“The extent to which government make up the shortfalls for households by giving them more money, it makes it harder to dampen demand,” Bullock said."}],[{"start":197.20000000000002,"text":"Abhijit Surya, senior economist at Capital Economics, said that the tone of the RBA’s statement suggested there would be a further rate rise in August."}],[{"start":207.00000000000003,"text":"“We suspect the bank is overestimating how quickly policy tightening will bring inflation to bear, with incoming data more likely than not to keep the bank in a hawkish mode,” he said."}],[{"start":217.00000000000003,"text":"Additional reporting by William Sandlund in Hong Kong"}],[{"start":226.65000000000003,"text":""}]],"url":"https://audio.ftcn.net.cn/album/a_1778029187_5065.mp3"}