- October 5, 2022
- Posted by: Stratford Team
- Category: Economy
The Reserve Bank of Australia (RBA) lifted its interest rate by another 0.25 percentage points yesterday, contrary to market expectations of a rise of 0.5 percentage points, but said “further increases are likely to be required over the period ahead.”
The rate rises—now six in consecutive months—are advanced in the name of fighting inflation, yet will do nothing to bring down prices. They are aimed at ensuring that economic growth is slowed, inducing a recession if that is considered necessary, to suppress workers’ wage claims in response to inflation, which the RBA estimates will reach almost 8 percent this year.
Philip Lowe, Governor of the Reserve Bank of Australia, addresses a lunch in Sydney, Australia, Thursday, September 8, 2022. [AP Photo/Mark Baker]
In announcing the decision, the statement by RBA governor Philip Lowe focused on the labour market, which was “very tight” with many firms having difficulty in finding new workers. Job…
