Reaction to latest RBA interest rate hike


* ACOSS deputy chief executive Edwina MacDonald: “Instead of relying on the blunt tool of interest rate hikes, the government should be tackling inflation directly by better regulating the rental market and taking further action to reduce energy and healthcare costs. We also urge the government to take further urgent action to assist those on the lowest incomes.”

* Greens treasury spokesman Nick McKim: “The case is now overwhelming for Labor to step in and override the RBA. The RBA is engaging in a war on young people with Labor’s support.”

* ACTU secretary Sally McManus: “The Reserve Bank seems hell-bent on crushing consumers and continues to punish those who did nothing to cause this cost-of-living crisis. This is the wrong decision. An action which is designed to put more pressure on those who cannot afford it and to push up unemployment.”

* Australian Chamber of Commerce and Industry chief executive Andrew McKellar: “If last week’s wage increase was brought to you by the ACTU, so too is today’s rate rise. This failure to exercise responsibility risks consigning Australia to more economic pain – higher prices, mounting interest rates and fewer jobs.”

* Housing Industry Association chief economist Tim Reardon: “Interest rates are a very blunt and ineffective tool in managing inflation and the wider economy. Fiscal policy is a far more effective and precise tool. In addition to the increase in rates, home building is also set to decline as regulatory costs continue to add to the cost of new home construction.”

* The Parenthood chief executive Georgie Dent: “The RBA’s decision will increase financial difficulties for many families across Australia who are already struggling with the surging costs of living. Without bold and urgent support from the government, these families will often be forced to make incredibly unfair choices.”

* CPA Australia spokesman Gavan Ord: “Today’s interest rate increase will put more pressure on businesses. It is getting increasingly difficult to predict where interest rates are heading and to plan for the future. Businesses will have to pass costs on to consumers.”


Tess Ikonomou
(Australian Associated Press)

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