James Thomson

There's ways you could prepare.

I see none of that.

But yes, you're totally right.

Those are not easy issues to get your head around and, you know...

I think we get a lot of these questions, particularly around when there's a rate hike and particularly when it's driven partly by supply side issues.

Why isn't there another way?

Why doesn't the RBA do something else?

I think over the years we've canvassed lots of different ways, increasing contributions to superannuation, different interest rates for different parts of the economy.

But

You know, it's all sort of interesting in theory, but the RBA has only got... And Michelle Bullock said this on the day she raised rates.

They've only got one tool.

It's a really blunt one.

We're sorry about that, but that's all we've got.

We can't invent another one.

So do I think it should have been a hold?

No, because inflation was building well before the Iran energy crisis started, wherein over the next...

six months we're in serious danger of something that's going to look a little bit like a wage price spiral because you think about it, we've got the minimum wage decision, which they'll probably increase the minimum wage by about 4.5%.

We've got some big increases in through retail awards and awards in the care economy coming through.

So those inflationary pressures continue.

Then you've got the Iran war.