The Reserve Bank of Australia just hiked interest rates for the fifth time this year on the excuse of mounting consumer inflation. Doing so it has failed to understand its role as just one tool in macroeconomic policy.

After years of Monetary Policy providing near 0% rates making the bank irrelevant, it has now raised rates to ensure its continued existence and justify its high six and even seven-figure salaries. Whereas it should have been acting as a tool alongside Fiscal Policy to manage the economy.

The role of the RBA is two-fold: to manage the cost of money (interest rates) and manage the supply of money (dollars in circulation). Both impact Demand-Side Inflation.

But Australia and the world are not facing a crisis in demand rather Covid-19 Supply-Side Inflation which the RBA cannot control and from which the world and its shipping infrastructure have not recovered this decade.

We are a country of rising grocery prices because businesses are not manufacturing enough. We are a country of rising rent and housing prices because builders are not building enough nor putting homes in Aussie hands. We are a country of rising service prices because providers have not kept their workforces trained and maintained to avoid wastage. We are an agricultural country being sacrificed to wind turbines. We are a country of rising energy prices despite energy being our primary competitive advantage. We are a country of oligopolies intent on squeezing competitive choice and cutting supply more.

Any visitor to a supermarket will tell you that what they used to be able to find is now hard to source given the whims of weekly Soviet-style supply schedules. Laughably, Coke or toilet paper one week, Pepsi or tissues the next.

Now, thousands of Australians will also sit tonight as rent around them increases, their mortgages become millstones, their ability to enjoy a happy Christmas is taken from them, because their prime minister’s fiscal ineptitude is punishing their contributions to stimulate a stunned retail sector.

This is a fundamental failure of a Federal Labor government whose own salaries, benefits and pensions are so far out of kilter with the community that their claims to “socialism” are a mockery of deceit.

A mockery of decency, when the only burgeoning sector in the economy is the paid protest industry which will do everything it can to agitate against “social cohesion” to perpetuate crime, hate and anarchy for its untaxed grift.

And $81 million in interest a day is being accumulated by Australia on a record national debt whose spending had little to do with improving the lot of Australians rather than those who protest Australia.

Today the Albanese Government and the Reserve Bank of Australia put a rusty nail in the legacy that thousands of Australians fought and died for across two World Wars and against numerous threats to its values of mateship and a fair go.

Were they to come back today they would be assailed by an Australia they would no longer recognise: beset by greed, a lack of industry and an abyss where there once was hope forced onto them by by parliamentarians, public servants and domestic terrorists who all hate Australia’s very existence.

There is no other explanation for it.

And today, rather than fixing the supply chains that they’ve broken, and returning the billion of dollars they’ve sent outside Australia for no Australian benefit, they’ve now told strugglers from all socio-economic backgrounds to cough up and struggle more.

© 2026 Adam Parker.