Anthony Macdonald

That's why we haven't had heaps of new supply come into the market.

So, you know, the devil's always in the detail.

It will be here again as well, James.

All right, James, let's move to our first big topic of the week, and that's interest rates.

On Tuesday, Reserve Bank of Australia Governor Michelle Bullock did the inevitable and raised interest rates for the third straight meeting, taking the official cash rate back to 4.35%, which matches the post-pandemic high.

James, it went to script, really.

Bullock told us inflation was already too high and was headed higher as the oil price makes its way through the economy.

The Monetary Policy Board voted 8-1 in favour of lifting rates, and the market's already telling us there's a 26% chance of a fourth straight rate rise when the board meets again in June.

James, you tuned into the press conference.

You've had a few days to stew on it since.

What do you think Michelle Bullock was really trying to tell us this week?

Yeah, more free trains down in Victoria, hey James?

Yeah.

That's good news.

I mean, Michelle Bullock, she basically said, look, it doesn't matter who's out there doing the spending.

The spending, whether it's the private sector or government or what, it's going to be pushing things in the wrong sort of direction or the direction that the RBA is really worried about.

I mean, she said, if the economy is supply constrained, there's little or no productivity growth, then yeah, public sector, private sector, whoever.

We've already shown we can't grow the economy at more than 2%.

So any spending that's aiming to grow the economy at more than 2%, it's going to give us inflation headache.

I mean, we've already got one of those, so it's going to make our headache even worse.