The RBA has made one of its most controversial calls in recent years - and this rate rise may not age well

The RBA's decision to increase borrowing costs during a period of geopolitical instability raises questions about the bank's risk assessment and economic foresight. With inflation already straining household budgets, the potential for prolonged conflict in the Middle East could exacerbate economic challenges. This move might reflect a narrow focus on inflation control, overlooking the broader implications of global events on domestic economic stability.