FEAR & GREED | Business News RBA set to hike rates next week; A$ pushes above US70c; why oil is measured in barrels
Jan 28, 2026
Interest rate moves loom as inflation unexpectedly picked up, with markets bracing for an RBA hike. The Australian dollar climbs past US$0.70 and the forces behind that rise are unpacked. A leadership spill shakes up Nationals politics. The quirky history of why oil is measured in 42-gallon barrels gets a surprising origin story. A major CEO’s $50 million share sale is also explained.
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Rising Inflation Likely Forces RBA Action
- The December-quarter CPI surprised on the upside, lifting the trimmed mean inflation to 3.3% and pushing inflation above the RBA's 2–3% target band.
- Markets now price a high chance of a rate hike next Tuesday, with economists warning more hikes may follow if inflation stays broad-based.
Mixed Views On Future Rate Path
- Economists are split: some view an initial hike as an insurance move, while others expect multiple increases because inflation trends are not friendly.
- The December-quarter drivers include energy price rises, removed state rebates, and seasonal travel demand, making parts potentially temporary.
Aussie Dollar Strength Explained
- The Australian dollar climbed past US$0.70 driven by both domestic strength and a weaker US dollar, reaching a three-year high.
- The A$ benefits as a commodity-linked, widely traded currency and even appears in about 2% of global FX reserves.