Letters to the Editor

RBA should accept its role in inflation rise

Readers’ letters on inflation woes; PwC’s tax scandal; solutions for nuclear waste; caps on foreign students; revoking Alan Joyce’s bonuses.

Aug 12, 2024 – 3.35pm

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Key Points

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Please send your letter to edletters@afr.com.au

It’s a bit rich for the Reserve Bank of Australia to lay the blame for inflation on the Labor government’s spending programs and tax cuts, especially since much of the inflationary pressures began during the massive quantitative easing programs initiated during the pandemic (“Bullock sends Labor warning on spending”).

QE programs were necessary as much of Australia’s economy was closed, and liquidity was crucial to preventing a deep recession. However, the RBA seems to overlook its own $188 billion term funding facility, which
allowed banks to borrow at 0.10 per cent for three years and only matured in June this year.