2023-05-02
Greens Treasury spokesperson Senator Nick McKim responded to the RBA’s decision to raise interest rates by 25 basis points at today’s board meeting.
“This decision beggars belief and will smash renters and mortgage holders even harder than they were being smashed already.”
“On the RBA’s own admission, interest rate rises are the wrong response to an inflation spike driven by corporate profiteering and supply side issues.”
“The RBA is out of control. Treasurer Jim Chalmers needs to use the powers that he has and step in and overrule this decision.”
“This is exactly the situation that Section 11 of the RBA Act was designed for.”
“If Grim Jim Chalmers refuses to act it will be a tacit endorsement of the RBA smashing renters and mortgage holders.”
“Chalmers’ PhD dissertation was a hagiography of former PM Paul Keating but Jim Chalmers is no Paul Keating.”
“Last week Keating came out in defence of the Section 11 powers and explained how his threat to use them forced the hand of the RBA.”
“Chalmers could learn a valuable lesson from that.”
“The Greens have drafted a private members Bill to strengthen the existing safeguard that gives the Treasurer the power to overrule the RBA.”
“Next week's Budget needs to now be the frontline for tackling high inflation and the cost-of-living crisis.”
“But instead, Jim Chalmers looks set to yet again pass the buck to the RBA and hand down a budget that tinkers at the margins to avoid upsetting Labor’s big business mates.”
“Jim Chalmers should be handing down a budget that taxes the corporate super profits that are driving inflation and that taxes the rich that are profiting from high interest rates and low rental vacancies.”
“He should then fund cost-of-living relief such as putting dental and mental health into Medicare, abolishing student debt, and raising the rate of income support.”
“The last 12 months have only shown that we need greater scrutiny and accountability of the Reserve Bank, not less.”