Living costs are rising and the RBA is pouring fuel onto the fire - Senate Estimates 15.02.23

I asked the RBA governor in estimates why he is increasing interest rates so fast given the cost of living is also increasing rapidly.

His reckless actions are going to force many people to default on their mortgages.

He could have tempered demand by “jawboning” long term interest rates. If he had said he was going to increase rates by 0.5% every six months for the next 4 years it would have given people time to adjust their expenditure. It would have also allowed wage increases to absorb the higher costs.

The RBA has no idea. The Parliament should be making decisions about Australia’s currency not unelected bankers.