Panic swept across the bond market on Monday after the oil price soared by a massive 27 per cent, triggering fears the Reserve Bank of Australia has already lost control of inflation that will force higher borrowing costs.
That’s after oil prices rocketed to near $US120 a barrel in the biggest one-day gain since 1988, as the escalation in the Iran war risks a protracted closure of the Strait of Hormuz that is choking off 20 per cent of energy supply to the rest of the world.
