You have conveniently ignored the whole of the last nine years in which inflation was in the 2% range.
Perhaps I should have said over the last 8 months that inflation has jumped. The sledgehammer of. The RBA will wreck havoc on those least able to afford it.
Surely you can remember what higher interest rates did to the economy between 1985 - 1995?
Sure it brought down inflation but it damaged a lot of people. My contention is that the current circumstance is very different in that the current inflation spike is not caused, in the main, by local factors and thus needs a different response.
If suddenly there is a reversal in job creation and unemployment goes back up what then, does the RBA do? Advocating for indiscriminate, demand blunting interest rate increases is a very dangerous game and the losers will be those at the bottom of the ladder, unlike me who can just ride it out for years.
