Opinion

The RBA is right to increase interest rates

Adam Triggs
By Adam Triggs
June 15 2022 - 7:30pm
International forces are making our inflation challenge worse. But it's wrong to say that higher interest rates in Australia don't impact those international forces. Picture: Shutterstock

Rising prices, an energy crisis, weak wage growth and now higher interest rates to boot. This has led many commentators to ask: why would the Reserve Bank of Australia seemingly make things worse by raising interest rates, particularly if high inflation is being driven by international and supply-side factors that are out of their control?

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Adam Triggs

Adam Triggs

Columnist

Adam Triggs is a director within Accenture Strategy, a visiting fellow at the Crawford School at the Australian National University, a non-resident fellow at the Brookings Institution, and a fellow at Macquarie University's E61 institute. He writes fortnightly for ACM.