The Reserve Bank has raised interest rates again. The cash rate is now 4.35%, after the third rate hike in a row. 

For Australians already stretched by the cost of living, it means another hit to mortgage repayments, rents and household budgets. 

And while the decision was widely expected, the reason behind it is more complicated. Some economists are calling it the “Hormuz hike”, a response to global oil prices, the war in Iran and fears inflation could skyrocket.

Today, economist and co-CEO of the Australia Institute, Dr Richard Denniss, on why the Reserve Bank is making Australians pay more to contain inflation, and the risk that it goes too far. 

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Guest: Economist and Co-CEO of the Australia Institute, Dr Richard Denniss

Photo: AAP Image/Dean Lewin