Why the interest rate could go even higher, and the RBA hiked the Australian Cash Rate.

The Reserve Bank of Australia (RBA) has just increased the cash rate to 4.1%, marking the second consecutive monthly hike in 2026. We are now inching closer to the record highs seen during the peak of the cost-of-living crisis. In this video, Graham Cooke breaks down the two primary drivers behind the RBA's latest decision and why these might just be the first of many hikes to come this year. We dive into the current state of Australian inflation—which has climbed back up to 3.8% —and the escalating geopolitical tensions in the Strait of Hormuz that are threatening global oil supplies. From potential work-from-home mandates to driving restrictions seen in neighboring countries, we explore how this volatile situation could change daily life in Australia. ### Video Timestamps 0:00 – The RBA hikes the cash rate to 4.1% 0:25 – Reason 1: Existing inflation and the RBA's 2–3% target bracket 0:41 – The inflation spiral from June 2025 to January 2026 1:08 – Reason 2: The oil crisis caused by the US-Iran conflict 1:18 – Why the Strait of Hormuz is critical for Australian fuel supplies 1:52 – The shipping insurance issue: Why oil prices may stay high 2:11 – Public concern, panic buying at the bowser, and talkback radio chatter 2:25 – Lessons from overseas: Mandatory WFH and driving restrictions 2:43 – Looking ahead: Will there be more hikes for the rest of 2026?. --- Stay updated on the latest financial news and rate changes at finder.com.au.