The Reserve Bank is set to hike the Official Cash Rate by 50 basis points today and provide more detail on just how high the rate could peak.

ANZ Chief Economist Sharon Zollner told Mike Hosking the central bank is grappling with a prolonged period of high inflation.

“The tightness of the labour market is so extreme inflation from that source is going to stick around, no matter what happens to that headline inflation number because of oil prices, for example.”

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