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RBA needs to hit pause on rate rises

Media Release
Nick McKim 1 Aug 2022

Greens Treasury spokesperson, Senator Nick McKim, has responded to the news of steep falls in house prices ahead of tomorrow’s RBA meeting.

“The RBA needs to hit pause."

“Inflation is being driven by supply side shocks and corporate profiteering.

“Jacking up interest rates will not fix these problems.

“The RBA needs to be honest about this with the Australian public.

“Monetary policy cannot curb inflation without punishing workers, renters and new homeowners, none of whom are the cause of the problem.

“They should not increase rates tomorrow.

“And the Treasurer needs to step in and use the levers that the Australian public have given him.

“We need a super profits tax to reign in corporate profiteering and to fund cost-of-living relief, such as free childcare, and putting dental care and mental health into Medicare.

“We can’t wait for the government’s review to get fiscal and monetary policy working together.

“A failure to use fiscal policy will only increase the likelihood of the RBA overreaching.

“The government also needs to step in to help new-owners and renters.

“Having lured new home-owners into taking on record levels of debt, the RBA is now punishing them doubly.

“Interest rate rises reduce the value of their asset and increase their monthly mortgage repayments.

“Getting rid of negative gearing and capital gains tax would reduce demand in the housing market without affecting mortgage repayments for homeowners.

“And the additional revenue could help fund 1 million new social houses that will provide renters with an affordable and secure alternative to the Hunger Games that is Australia’s private rental market.”

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