In this episode, host Marius Mariton speaks with AMP Chief Economist Shane Oliver about Australia's latest interest rate hike and what it means for households, inflation and the economy. With the RBA cash rate now at 4.6%, Oliver explains why the central bank has moved to reinforce its inflation-fighting credibility, and why mortgage holders are bearing more of the burden than households benefiting from higher deposit rates.

Oliver also discusses whether Australia is entering a period of stagflation, with slower economic growth and inflation likely to remain above the RBA's target for some time. He also looks at housing, with dwelling prices falling from their recent highs, and discuss whether the correction could deepen. Oliver also shares his view on the likelihood of another RBA hike in November or December, pointing to weakening household spending, labour market conditions and falling building approvals.

The conversation then turns offshore, covering US inflation, the Federal Reserve, rising global bond yields and what the changing interest-rate environment means for investors. Oliver also discusses the Australian dollar, the impact of AI demand on inflation and construction costs, and the end of card surcharge fees. Finally, Marius asks Oliver about his long weekend plans, and discovers that sailing, rather than rugby or AFL, is more his thing.