‘Stagflationary shock’ from Iran war a ‘nightmare’ as confidence among Australian households crashes

Weakened economic activity, soaring fuel prices and rising inflation have created a horror scenario, RBA deputy governor says

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Andrew Hauser, the Reserve Bank of Australia’s deputy governor, says the “stagflationary shock” from the Iran war is a “central banker’s nightmare”, as confidence among Australian households crashed to its lowest level in years.

Speaking at an event in New York on Tuesday morning AEST, Hauser said the RBA was “judging the balance” between the damage to the economy from “a big income shock” associated with soaring fuel prices, versus a sharp rise in inflation.