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Reserve Bank admits they got it wrong · The Front

• 0:01
  Speaker 1: Today's biggest news from The Australian. I'm Claire Harvey with
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  Speaker 1: the Front's afternoon headlines. The Reserve Bank of Australia has
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  Speaker 1: put the cash rate up for the first time in
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  Speaker 1: two years. Mortgage rates will now rise as one lender
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  Speaker 1: after another follow suit. The cash rate determines how much
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  Speaker 1: it costs banks to borrow money the money they lend
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  Speaker 1: us to buy homes. A rise in the cash rate
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  Speaker 1: inevitably means lenders jack up their home loan rates. It's
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  Speaker 1: a unanimous decision by the Monetary Policy Board of the
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  Speaker 1: Reserve Bank, and it's being interpreted by economists as a
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  Speaker 1: major blow to Labour's economic agenda as it prepares for
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  Speaker 1: a budget in May. The Bank said in its decision
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  Speaker 1: that it had underestimated the heat in the economy and
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  Speaker 1: although inflation has fallen steadily since twenty twenty two, it
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  Speaker 1: is picked up materially in the second half of twenty
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  Speaker 1: twenty five. The Bank said it judges that some of
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  Speaker 1: the increase in inflation reflects grade at capacity pressures. That is,
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  Speaker 1: higher household consumption, government spending and business investment is driving
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  Speaker 1: up the prices of materials and goods that power, construction
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  Speaker 1: and the materials we all consume. The Bank is also
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  Speaker 1: concerned headline inflation is going to keep rising, a significant
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  Speaker 1: lift on its previous forecast to four point two percent
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  Speaker 1: by June before falling to three point six percent in December.
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  Speaker 1: That's well outside the Bank's target range, where inflation should
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  Speaker 1: be between two and three percent. You can read all
• 1:34
  Speaker 1: our analysis right now at the Australian dot com dot
• 1:37
  Speaker 1: au and come back to the front first thing in
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  Speaker 1: the morning for another bombshell twist in the Brittany Higgins saga.
• 1:44
  Speaker 1: Former staff for Fiona Reynolds is suing the Commonwealth and
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  Speaker 1: says she was frightened and intimidated by Scott Morrison's actions
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  Speaker 1: after Higgins made her allegation of rape. She also says
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  Speaker 1: she was frozen out by Morrison's office and left in despair.
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  Speaker 1: See you back here first thing Wednesday.