RBA must show courage in election rate rise

The Reserve Bank of Australia has again underestimated the strength of inflation, and it should now get off the fence and begin to raise interest rates next week, regardless of the federal election.

That would have been consistent with his desire to see labour costs rise before lifting the cash rate from its near-zero level.and robust underlying inflation of 3.7 per cent reported on Wednesday should surely cause a rethink at Martin Place.The headline inflation result was the highest since the 10 per cent goods and services tax was introduced in 2000, and well above market expectations of 4.6 per cent.

Price pressures are broad and domestic prices – such as for food, housing and transport – are rising faster than expected, suggesting spare capacity in the economy is largely exhausted.An interest rate rise from the current 0.1 per cent during the election campaign would be politically controversial and could advantage Labor.

Agree- get off the fence RBAInfo

The fcked this one up

More importantly, the RBA must show independence.

If only the RBA knew how to do its job, things would not have been this bad.Warning signs were all around since March 2021 and all that Philip Lowe did was to be ‘patient’. I wish I have the power to sack him. I would not show any ‘patience’.

Dude. Seriously. This article should have been written 12months ago. Blind Freddy knew that “0.1% until 2024” was a total and utter delusion and that the inflation genie was already out of the bottle.

... it's a blip , no one should be freaking out ... yet ! Inflation RBA

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