Nick McKim (Tasmania, Australian Greens) Share this | Hansard source

My question is to the Minister representing the Treasurer, Senator Gallagher. Last month, the RBA said that as much as three-quarters of the increase in inflation is a result of supply shocks, including corporate profiteering; that their models are not well suited to supply shocks; and that there is very little that monetary policy can do to offset supply shocks. We find ourselves today with the RBA responding to a problem it doesn't understand with a solution that doesn't suit. Minister, do you believe that the RBA smashing renters and mortgage holders with interest rate increases in response to inflation driven by supply-side shocks and corporate profiteering is the best economic policy that this country can muster?