Post #4012732
2026-07-22 13:12 UTC
Incredible to see the #RBA pontificating on people “not understanding interest rates” for being the reason nobody trusts them. Not the decades of policy error after policy error only making things worse. 🤦♂️ https://www.abc.net.au/news/2026-07-22/understanding-inflation-would-help-lower-interest-rates-rba/106944486
Replies (1)
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@stephengentle@ioc.exchange 2026-07-22 13:15
Apparently it’s “incorrect” to believe that higher interest rates could increase inflation, the RBA says. Funny, an IMF study found actually that hiking rates *did* worsen the 2022-2025 inflation episode, with countries that did it ending up with higher peak inflation and it taking longer before inflation started to drop (after the external drivers actually causing it eased). https://www.imf.org/en/publications/wp/issues/2025/10/24/navigating-the-2022-inflation-surge-571068 #inflation #interestrates