Why did the RBA raise interest rates? Will higher petrol prices have same effect?

The Reserve Bank hiked interest rates for the second time this year this week, but the closely divided vote indicated it wasn't an easy call.

The hike adds an extra cost to many households and businesses that are already facing another kind of (unavoidable) price pressure in the form of higher fuel prices.

And it left ABC readers asking — how would hiking rates stop inflation caused by an unavoidable cost like petrol that's spiking due to a war on the other side of the world?

And if the RBA wants households to tighten their belts, isn't the fuel price hike going to do that for them anyway?

As the split in the RBA boardroom indicates, there are no easy answers — but let's walk through what we know.

Know more- https://www.abc.net.au/news/2026-03-19/rba-interest-rates-inflation-demand-petrol-prices-explainer/106468646