Luke speaks with Warren Hogan, the Managing director of EQ Economics and economic adviser to Judo Bank, following the Reserve Bank of Australia raising its official interest rate to 4.1% yesterday, the highest since early 2012.

Concerned about lingering inflation, the bank increased the cash rate target by 0.25% for the second consecutive month.

According to the latest consumer price index from the Australian Bureau of Statistics, prices rose 6.8% year-on-year until April, attributing the increase partly to statistical fluctuations caused by last year’s temporary fuel excise cut.

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