You've found the crucial point blueballs, which is probably obvious to most - that rates help control the growth rate of the domestic economy. But the RBA state they are using interest rates to control inflation. Well it can only do that if the inflation is a direct result of the growth of the domestic economy. But what about IMPORTED inflation eg Oil prices, International food prices. Interest rates do NOTHING to control this inflation and the RBA should stop trying, otherwise they will cripple our domestic economy. Whats the answer - I dunno, I'm just a computer nerd, but ponder the above and someone more au fait with economics should be able to come up with something better than we have got now.
