RBA engaging in generational war with Labor’s support


Greens Treasury spokesperson Senator Nick McKim has responded to today’s decision by the RBA to raise interest rates for the twelfth time in thirteen months.

“The case is now overwhelming for Labor to step in and override the RBA,” he said.

“The RBA is engaging in a war on young people with Labor’s support.

“The total volume of retail sales is falling yet recent analysis by CBA of 7 million customers showed that older people are actually stoking demand.

“But Labor has caved to the establishment so young people are copping it in the neck, and the worst is yet to come.

“Young people are more likely to be renting or have recently bought a home, which means that they are paying the highest price for Labor’s culpability.”

“Young people are also more likely to be in insecure employment and be among the 130,000 people that are forecast to lose their job under Labor’s Budget.

“By the RBA’s own admission, interest rate increases are not the right tool to respond to the current bout of high inflation that is predominately a result of supply side pressures.

“Real wages are falling and the Treasury Secretary said last week that there are no signs of a wage-price spiral.

“Meanwhile corporate profits continue to rise.

“But the RBA is smashing renters and mortgage holders in a pathological pursuit of price stability.

“They are doing nothing to inspire any confidence among anyone but the already wealthy.

“In spite of all of the evidence that interest rates are not the right tool for the job, Labor has completely succumbed to central bank orthodoxy.

“Instead of leaving it to the RBA who will always use the one blunt instrument that they have, Labor should be dealing with the cost-of-living crisis by freezing rents, taxing super profits and the super rich, and putting dental into Medicare, wiping student debt, and raising income support.

“Jim Chalmers should also step in and use the powers that he has under Section 11 of the RBA Act to overrule the RBA to freeze interest rates.”