RBA must hike now says Van Eck, as bond yields rise and oil prices surge | The Business | ABC NEWS

By ABC News (Australia)

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Investors bailed out of the Australian share market this week as nerves grow the RBA will raise interest rates sooner rather than later. Russel Chesler, head of investments and capital markets at Van Eck told Alicia Barry, "we had an inflation problem before the Iran war." He says the Reserve Bank now needs to take quick action to bring inflation down. "The RBA needs to work really hard to get back in the 2 to 3 per cent range, they've said they can do it by the end of 2027. So I'm saying there's going to be an increase now.. (but) is that going to be enough, are we going to need another rate increase?" He said. Financial market are pricing in an 87 per cent chance of an increase in interest rates to 4.6 per cent on September 29. A hike by the end of the year is fully priced in. The ASX 200 ended the week off 2.9 per cent to 8,741 after two days of heavy selling at the end of the week. Investors are worried about the inflationary impact of rising oil prices. Brent crude topped

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