The RBA puts the interest rates up to curb inflation. The rates will have to go up even higher to curb people going into lifelong debt that they don't seem to realise that they cannot afford. 'Free' money and Socialism is really beginning to bite at last. And, since Morrison adopted Socialist money policies, and Dutton just stares like a loon, it's up to people themselves to straighten themselves out. Politics will not help.

Kudos Graham Young

Who set the inflation rate at 2.3% for Australia. RBA P Lowe is not original. Quote from Adept Economics : In 2023, central banks worldwide are continuing to increase interest rates because inflation still remains higher than inflation targets – i.e. a 2-3% target in Australia and 2% targets in the US and UK. The RBA lifted the cash rate to 3.35% on 7 February and, on 1 February, the Federal Reserve announced a Federal Funds rate increase of 25 basis points to the 4.5% to 4.75% range... And more rate rises are expected.

All just insidious & criminal manipulation !

What is the function of the Reserve Bank, Lowe and his bunch of cronies, bankers and economists. They have one overriding responsibility, and that is to ensure monetary policy acts in a way to return the maximum profits possible to Capitalism. You ask; Why does the Reserve Bank Board wants to keep inflation in the range of 2% to 3%, there is a very simple answer, that's the ideal level of forced inflation that will return the highest possible profit margins to big business, high inflation leads to uncontrolled costs. reducing profits, very low inflation leads to stagnation, and again unacceptably low profit, an abysmal situation. The Reserve Bank has no concern for workers and their insignificant problems of stagnant wages, inflation and high interest rates etc. These workers must pay the price and carry the can if profits are to be maximised. What other use are the working class, other than to serve Capitalism?

You got to love the way the elected government of the people, both Coalition and Labor ,cringe whenever asked about the functions of the all powerful Reserve Bank, Phil Lowe is GOD to these political flunkies, they go to great lengths to stress the total independence of this bunch of un-elected traitors!

I suspect that Paul1405 got his beliefs from Marx's Das Capital. Next he'll be talking about the "rate of exploitation of the workers" rather than rate of return in more mainstream economics theories.