Australian Prime Minister advises the RBA not to 'overreach' on interest rate rises

Australian Prime Minister Albanese warned the Reserve Bank against “overreach” in its battle with inflation Inflation Inflation is defined as a quantitative measure of the rate in which the average price level of goods and services in an economy or country increases over a period of time. It is the rise in the general level of prices where a given currency effectively buys less than it did in prior periods.In terms of assessing the strength or currencies, and by extension foreign exchange, inflation or measures of it are extremely influential. Inflation stems from the overall creation of money. This money is m Inflation is defined as a quantitative measure of the rate in which the average price level of goods and services in an economy or country increases over a period of time. It is the rise in the general level of prices where a given currency effectively buys less than it did in prior periods.In terms of assessing the strength or currencies, and by extension foreign exchange, inflation or measures of it are extremely influential. Inflation stems from the overall creation of money. This money is m Read this Term. Speaking in a radio interview on Wednesday (local time)

“Well, of course, the Reserve Bank sets these rates independently of government,”
“But they need to be careful that they don’t overreach as well."
“Of course, the Reserve Bank declared a while ago, and they’ve conceded the error that interest rates would, would stay at the extraordinarily low levels where they were for a period of years up to 2024, and that hasn’t been the case.”

And:

"they need to make sure that they get the assessment, right,”

I said yesterday, in reference to Reserve Bank of Australia Governor Lowe saying the path ahead of the Bank was aa narrow one to avoid error:

• His 'narrow path' that is 'clouded in uncertainty' remark is accurate. While the RBA is trying to navigate this path they'll also be navigating a review into its operations. I reckon this is going to get real ugly for the RBA and Australia before it gets better.

And now the PM weighs in. The ugliness didn't take long to manifest, did it?

-

Lowe is going to have to keep looking over his shoulder.

There is nothing like a 'review' of an organisation to usher in political interference.