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With interest rates rising at the fastest rate in 3 decades and the cash rate at a 7 year high, you'd expect the economy to respond by reducing their spending. This hasn't happened. It is business' bloated profits rather than high cost of inputs or excessive demand which is forcing inflation upwards. The RBA can't control this; aggressive rate rises will do more damage than good.
By Ulrika LoboWith interest rates rising at the fastest rate in 3 decades and the cash rate at a 7 year high, you'd expect the economy to respond by reducing their spending. This hasn't happened. It is business' bloated profits rather than high cost of inputs or excessive demand which is forcing inflation upwards. The RBA can't control this; aggressive rate rises will do more damage than good.