Labor must not leave inflation fight to RBA   
2026-02-01
greens.org.au
Australians are bracing for another interest rate rise because Labor has turbo-charged the housing crisis and refused to tackle corporate price gouging, the Greens say.

With the RBA likely to raise rates this week, the Greens argue that millions of people will face an interest rate rise because the government has not tackled two major causes of inflation, spiraling housing costs and corporate profiteering.

Sen. Larissa Waters, Leader of the Australian Greens said:

“If you're a mortgage holder or a renter, you face being hit by the RBA to “fix” the government’s "inflation problem".

“Anyone with a mortgage will be giving more per month to the big banks. Renters are going to cop it as it will trickle down into unfair rent rises. That leaves you with less money to spend on food, or the things you enjoy.

“It’s hard enough right now to get ahead, you shouldn’t be doing it harder. It shouldn't be on you.

“This is about choices. The government’s priorities mean that you are copping the pain while banks, energy companies and property investors keep winning.

“If they’d taken them on, you wouldn’t be getting a rate rise.”

Sen. Nick McKim, Greens Economic Justice spokesperson said:

“Labor has chosen to leave inflation to the Reserve Bank instead of tackling some of the causes of rising prices - skyrocketing housing costs and corporate price gouging.

“If the Reserve Bank increases interest rates the Treasurer will wring his hands and pretend he shares peoples’ pain when in reality he is responsible for increasing pressure on the RBA to raise.

“If you have a mortgage you are going to feel the pain, while the big banks keep winning. If you’re renting, higher interest rates will flow straight into rent increases.

“Labor pretends this is out of their control. It isn’t. This is about political choices, and Labor has chosen to protect corporate profits while ordinary people wear the pain.

“Big corporations are driving up prices and making massive profits, and Labor refuses to make price gouging illegal across the economy.

“At the same time, Labor is handing out around $180 billion in investor tax breaks that push up house prices and rents.

“The big winners from rising interest rates are the big banks, which already make around $200,000 in profit on the average mortgage.

“Energy giants like AGL and Origin are also cashing in, with around a third of people’s power bills going straight to profit.

“We need to make corporate price gouging illegal, and we need to end tax breaks that help wealthy investors hoard housing.

“People deserve a government that fights for them, not one that leaves inflation to the RBA while protecting big banks and corporations.”

Sen. Barbara Pocock, Greens Finance, Housing and Homelessness spokesperson said:

“In the midst of a housing crisis, families across Australia are holding their breath in anticipation of another interest rate rise. Millions of people are already in mortgage stress, already hurting in a cost of living crisis.

“Australia’s inflation problem is being driven largely by rising house prices, caused by Labor’s failed housing policies.

“$181 billion worth of investor tax handouts are driving up the cost of housing. Investor lending is running hot and now economy wide inflation is in resurgence.

“Labor’s 5% deposit scheme, combined with their massive subsidies for property investors are spiking housing costs, which is the biggest driver of inflation.

“It’s clear that Labor cares more about investors with dozens of properties than it does about renters, first home buyers and homeless people.

‘The Albanese government must urgently slow housing inflation. Labor needs to stop treating housing like a game of monopoly. It needs to scrap the tax breaks for wealthy property investors and directly build social and affordable houses.”

Bobby. wrote on Feb 2^nd, 2026 at 4:20pm:


Yes, that's courtesy of mainstream Neoclassical economics, followed by Chalmers and Bullock - and you.....

Quote:


That's what happens when governments, forced to keep income taxes low (to get elected), try to find other ways to 'balance the books'.

Quote:


And you are supporting the "small government ' ideology which sacrifices low income groups on the altar of free markets and private ownership of housing.

Bobby. wrote on Feb 2^nd, 2026 at 5:39pm:


With the emphasis on "mug".....you are complicit in, eg,  FD's privatization ideology.

As for the entrenched Neoclassical economics ruling the world from the IMF down, TIAA (There Is An Alternative) as opposed to mainstream Neoclassical economists' assertion of TINA (There Is No Alternative) - hence the moniker 'dismal science'....

TIAA, as have shown you in the MMT thread. 

Bobby. wrote on Feb 2^nd, 2026 at 7:41pm:


Your error: the anachronistic 'Rothschild banking system' is a private-sector monstrosity.

Time for some of the private sector's debt money (ie interet bearing money) supplied by "money printing"  in private banks  (when they write loans), to be replaced by "free" money issued by the nation's treasury, on behalf of the public sector. 

The key is direct control of inflation by government, not the CB.

See MMT.  

https://www.abc.net.au/news/2026-02-03/reserve-bank-lifts-interest-rates-februar...





1h ago

The Reserve Bank has lifted interest rates by 0.25 percentage points, as had been widely forecast.

The new cash rate is 3.85 per cent, up from 3.6 per cent.

"While inflation has fallen substantially since its peak in 2022, it picked up materially in the second half of 2025," the RBA Board said in a statement.

"The Board has been closely monitoring the economy and judges that some of the increase in inflation reflects greater capacity pressures. As a result, the Board considers that inflation is likely to remain above target for some time.

If RBA hikes, you can't say it didn't warn us

"Capacity pressures reflect, in part, the greater momentum in demand seen in recent months. Growth in private demand has strengthened substantially more than expected, driven by both household spending and investment.


"Activity and prices in the housing market are also continuing to pick up," it said.

It said conditions in the labour market were also "a little tight" and had stabilised in recent months, in line with the pick-up in momentum in economic activity.

The RBA had cut interest rates three times last year as inflation declined. Its last rate cut occurred in August.

This is the RBA's first monetary policy meeting of 2026.

Bobby. wrote Yesterday at 2:45pm:


Yes, whereas money creation should serve the public good, as well as private good.

Bobby. wrote Yesterday at 3:02pm:


Yeh, while cashed up boomers - like you and me - are laughing all the way to the bank.

An evil system......

Captain Nemo wrote Today at 7:56am:


Cranston - a mainstream Neoclassical economist pushing 'the dismal sicience' , is part of the problem not the solution. 

I showed Albo a copy of 'The Defict Myth' but he turned up his nose.

The author, Stephanie Kelton, recommends elected governments should take back control of  'independent' reserve banks, but Chalmers prefers to have some-one else to blame for a dysfunctional economy....

The chickens are comming home to roost....will ON become our next government, as people grow increasingly disillusioned with the majors?

Needless to say, PM Pauline Hanson won't be able to fix the dysfunctional economy either....