RBA Hikes Recession Risk and Treasurer Washes His Hands in Parliament

RBA Hikes Recession Risk Treasurer Washes His Hands in Parliament

The most aggressive interest rate hiking cycle in over 30 years.

The RBA remains blinkered and resolute in raising interest rates with no end in sight.

Compounding its earlier serious failure of failing to recognise the coming wave of inflation. As well as the complete lack of need to keep interest rates near zero when the Australian economy was already booming coming out of Covid.

Ignoring the stimulus measures of Governments around the country, and even going so far as to enter into Quantitative Easing. This was largely done as a mere imitation of the Federal Reserve.

The current statements by the RBA continue to echo those of the US Federal Reserve. Seemingly with little original thought occurring at the RBA around the specifically Australian experience.

The Reserve Bank continues to ignore that the economy is already tinkering on the edge of recession.

Every RBA push higher, slides the struggling feet of the economy closer to cliff edge.

Into the abyss is just another phase of the role-coaster economy that is entirely of the RBA’s making.

In this statement, they have adjusted their commentary to suggest they will consider all aspects of the economy going forward, but this is more a placation to the rising anger in the community. Rather than any change of the actual course they have mapped out for themselves.

They continued to say they remain resolute.

The RBA did not understand global inflation or the post-Covid boom and the coming impacts this would have on the Australian economy.

And it is again failing to understand that this is a different kind of inflation, they missed the boat to do anything about it, and belatedly are only compounding their errors to the demise of Australian families. Already struggling under the weight of the higher prices the RBA helped generate, and the impact of the previous rate hikes already taken.

The Federal Treasurer just highlighted in parliament, that the RBA is independent, and much of the inflation is from overseas. This is a massive side-step on his specific responsibility to ensure the RBA is competent and capable of carrying out its duties to the Australian people.

The RBA is independent on monetary policy decisions and has shown itself to be repeatedly and consistently incompetent.

Is the Federal Treasurer choosing to throw Australian working families to the wolves of RBA incompetence? The Australian people should not be put through this enormous economic roller-coaster of the RBA’s making, which is already hurting so many Australians.

The Governor and the Board are clearly not capable of doing the jobs allocated to them. The Treasurer has to invoke a complete overhaul of the organisation from top to bottom.

The RBA is not of high standing internationally, and we are only embarrassing ourselves further in keeping things as they are.

Clifford BennettACY Securities Chief Economist

The view expressed within this document are solely that of Clifford Bennett’s and do not represent the views of ACY Securities.

All commentary is on the record and may be quoted without further permission required from ACY Securities or Clifford Bennett.

This content may have been written by a third party. ACY makes no representation or warranty and assumes no liability as to the accuracy or completeness of the information provided, nor any loss arising from any investment based on a recommendation, forecast or other information supplied by any third-party. This content is information only, and does not constitute financial, investment or other advice on which you can rely.