Danger zone: why war in the Middle East has landed the RBA’s inflation fight in tricky territory

The Reserve Bank appears ready to push harder against inflation but it comes with a greater risk for the economy

The fight against inflation has entered a new, more dangerous phase.

For years, the Reserve Bank has been attempting, as gently as possible, to steer inflation back to its 2.5% target while trying to retain as many of the post-pandemic job gains as possible.