‘Shocks’ to amplify interest rate volatility: RBA

Interest rates could become more volatile over coming years due to potential economic shocks from war, cyberattacks, global trade disputes and climate change, a senior Reserve Bank of Australia official says.

The warning by assistant governor Brad Jones comes after governor Michele Bullock said the economy was facing “shock, after shock, after shock” from the pandemic and armed conflict in Ukraine and the Middle East that have pushed up the global oil price.