The Reserve Bank Governor says the central bank is closely monitoring fuel prices, but won't rush into reacting.

Anna Breman says the Iran war is likely to lead to higher inflation and lower growth in the short term.

Breman says that's unlikely to make them hike the Official Cash Rate - but things could change if higher fuel prices pressure the economy.

Independent economist Cameron Bagrie says it's important to keep an eye on the 'second-round' effects from the conflict in order to determine future OCR changes.

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