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Economist Brad Olson from Infometrics discusses the Reserve Bank's recent decision to raise interest rates. He emphasizes that, although interest rate increases can be detrimental, the Reserve Bank had little choice due to persistently high inflation, which currently stands at 7.2%, far exceeding the target range of 1-3%. While inflation has plateaued, it has not decreased into the desired range. Olson notes that economic demand continues to exceed supply, prompting the Reserve Bank to further increase interest rates as a measure to cool the economy. They raised rates by 50 basis points today and anticipate an additional increase of 325 basis points in the future.