.25% means inflation set to rip, page-44

"by definition interest rate rises are INFLATION!"

Actually there is an inverse relationship, By reducing consumption the RBA is taking pressure off having too much cash chasing too few goods.

As interest rates go up consumers with debt have a reduction in their discretionary spend because the banks are sucking it in. So if consumer A has to spend $1000 extra per month to service their loan then that is $1000 less that they could spend on consumption thereby taking pressure off price rises.

If the more of the recipients of ScoMo's cash handouts had have spent it instead of hoarding it then there would be less of a problem.

Inflation becomes the biggest problem when people begin to anticipate it. The RBA needed to go hard and go early otherwise they are allowing it to become ingrained. Chalmers big spending plans need inflation.