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If the RBA gets its job wrong, the PM will pay with his
If the Reserve Bank gets its job wrong, Prime Minister Anthony Albanese will pay for it, a columnist argues.
Key points
- The Reserve Bank has raised interest rates five times this year, according to the column.
- A survey found only about a quarter of people believe higher rates reduce inflation, while almost 60 per cent think they increase it.
- Official rate increases flow through to variable-rate home loans almost immediately, but fixed-rate loans of 10 years or more take longer.
Why it matters. The column says rate rises eventually pass through to all forms of borrowing, leaving households with less money to spend on other things.
On November 4, 2026, the Reserve Bank raised interest rates for the fifth time this year. The official overnight cash rate sets the base for all other rates, and the Reserve aims to keep inflation at 2 to 3 per cent a year. A survey found only about a quarter of people believe rate rises reduce inflation, while almost 60 per cent think they make it worse. The columnist says rises also benefit savers, because banks must raise the rates they pay depositors.
Latest updates
If the RBA gets its job wrong, the PM will pay with his
Anthony Albanese. He’s a man who’s taken little interest in the economy now being caught by the iron rule of politics: if the economy turns bad on your watch, you take the blame. Opinion November 4, 2026 — 5:00am So the Reserve Bank has raised interest rates for the fifth time this year. But why? What’s it trying to fix? And will it work? These are matters of no little importance to those of us struggling to keep up with the cost of living. But they’re also of concern to Anthony Albanese. He’s a man who’s taken little interest in the economy now being caught by the iron rule of politics: if the economy turns bad on your watch, you take the blame. Photo: Illustration: Dionne Gain The Reserve has been surveying people to find out how much they know about the economy and what they think of its good self. It’s been chuffed to learn that inflation is by far our greatest economic concern. Like all other central banks, the Reserve sees keeping the rate of inflation low as by far its most important role. Although most people know the Reserve is responsible for keeping the rate of inflation low, the survey finding that would have worried it a lot was that only about a quarter of people (including those who read my column, I trust) believe that increasing interest rates will reduce inflation, whereas almost 60 per cent think it will make inflation worse. So, just this once, let’s go back.