Interest rate rise proves only one thing matters: lower inflation

Another rate hike would take the official cash rate to its peak in 2024, while the Reserve Bank warns households are hurting “very seriously” and “Australians are poorer”.

RBA governor Michele Bullock took to the podium in Sydney yesterday to inform the Australian public that inflation was the central bank’s key priority and that it was willing to crash the economy to suppress inflation. It revised economic growth to 1.3% this year; it expects this figure to remain low until at least June 2027, and expects unemployment to rise until the end of 2027.