Tuesday’s increase was the biggest rise in the cash rate since February 2000.
Stream more on politics with Flash. 25+ news channels in 1 place. New to Flash? Try 1 month free. Offer ends 31 October, 2022. “However, a failure to do so would only risk embedding high inflation, forcing the Reserve Bank to take more drastic action. RBA Governor Philip Lowe listed global inflation as one of the key reasons behind Tuesday's cash rate rise. Picture: Getty Images
"Higher interest rates will also help establish a more sustainable balance between the demand for and the supply of goods and services. Medium-term inflation expectations remain well anchored and it is important that this remains the case." Treasurer Jim Chalmers said the RBA’s rate increase was “very challenging news” for those who are “already doing it tough”.
Normal interest rates, historically are around 3%. The ultra low rate should of been abandoned when the GFC was over. Cheap money fuels speculation.
They need to stop giving themselves wage increases and stop crippling people with these ridiculous hikes..So many people are already unable to survive now and this will cause more to be homeless. They caused the economy to bust not us
Yes best way to stop inflation, is to start a recession! It’s complete madness! How about stop governments pay people to stay home!
Savings accounts 👍, home loans & consumables👎. Treasurer Jim Chalmers said 'We’re making meaningful investments in cleaner and cheaper energy'. Delay this NOW & support coal and gas power stations in the interim to repair and upgrade! This reduce costs$ to Australians💡.
Nice, us savers will get higher interest rates👍. Hopefully the Banks will pass it on in Full?
For the love of god STOP PRINTING IMAGINARY MONEY
why applaud this inflation will increase anyway as more people will be competing for what groceries are still actually LEFT on the shelf!! these economists do not live in real world. MORE to life than bricks and mortar
Its the Reserve Bank of Australia by name only much like the Federal Reserve. They are a private company intertwined with the government and when things go to shit, its all their doing. There is no outside uncontrollable factors. BTW, we already have a high inflation stealth tax.
Not the point, the Governor of the reserve bank told the country none of this would be happening and he constantly comes across as a smug arsehole when delivering these rate hikes.
I am not an economist but i dont see how raising interest rates when everything is so expensive already is the solution.
Looks like they getting prepared to crash what's left of the economy