Anthony Macdonald

There's been plenty written about it, the CGT reform, negative gearing, maybe some other surprises.

If you put the RBA's decision with the budget and what we're told to expect, who's taking the hit out there in Australia to bring down inflation?

Yeah, good point.

You're right.

Are you really strangling the consumer by bumping up interest rates?

We've seen that there's plenty of people out there that are making money from their higher interest rates on their balances that they're living off.

I mean, if anything, it's more money in their pockets.

It's chucking that money into the system as much as it is taking borrower's money out.

Michelle Bullock said herself inflation will get up near 5% in June.

I think 4.8% for the year to June 30, the RBA thinks.

I mean, that's the CPI, trim mean 3.8%.

Few saw that coming.

We're seeing that rates may be not the most effective way of stopping it.

Perhaps less effective as a transfer mechanism, as you were talking about there, James, but that's still the RBA's tool and the RBA is still mandated to use it at times like this.

So you think rates have to go up.

Like we said, the market says there's a 24% chance of another hike in June, but it also says there's only one more hike for the rest of this year, James.

So

That to me, it looks like everyone's going, all right, inflation's going up in the short term.

It's likely to be around, but the RBA is actually going to show some restraint and patience and maybe sit on this problem and be happy to live with it a little bit more than it's shown a propensity to in recent months.

If you look at the RBA's latest forecast, James, it also came out on Tuesday.