RBA Governor Philip Lowe announced the interest rates would be raised another 25 basis points to 4.1 per cent on Tuesday, the 12th rate hike since May 2022.“ is not the end of it, this is start of the second round,” the Herald Sun columnist declared.
“We’ve now got a direct, head-to-head conflict between what’s developing on the wages front and what is likely to happen with interest rates going forward”, he told Steve Price on Sky News Australia’s The Bolt Report. The Herald Sun commentator said the consequences of the COVID-19 pandemic where huge spending occurred and the RBA cut rates to zero is largely responsible for the current situation.
“If we have inflation at 8 per cent, wages at 7 or 8 per cent, we’re locking in the sort of destructive insanity that we’ve seen in the past. And it will mean very high interest rates, it will mean job losses – it will mean real destruction, business collapses."
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