In a nutshell, the role of Central Banks with a neoliberal economic theory agenda is: ‘[the] insistence that tight policy must be maintained because people might expect higher inflation and might therefore demand higher wages, reveals the Bank's real preoccupation: keeping labour in check. What the Bank fears is not inflation itself, but the possibility that workers might claw back some of the income share lost to corporate profits over the last two decades.’
Read more:
https://www.taxresearch.org.uk/Blog/2025/10/17/what-do-you-do-when-the-targets-wrong/
So as we await the RBA’s decision, let’s focus on what their focus will be… unemployment rates. If Australia’s inflation index stubbornly refuses to remain within a completely arbitrary range, the RBA will look at the unemployment rate and bet on leaving the cash rate where is it and might even signal its willingness to take it up a notch if workers don’t behave and ask for more equitable remuneration.
You know the RBA is not on your side, right?
#Inflation #RBA #AusPol #OfficialCashRate