Knuth hits out at Reserve Bank of Australia and big businesses

Mar 9, 2023

Knuth hits out at Reserve Bank of Australia and big businesses

Mar 9, 2023

Member for Hill Shane Knuth has today labelled the latest RBA interest rate rise as a kick in the guts for millions of Australians.

Knuth said that the only people the latest interest rate rise will hurt are those average Australians who are already struggling to keep a roof over their heads.

“I find the lack of apathy and the “shrug of the shoulder” approach from our Reserve Bank extraordinary,” Mr Knuth said.

“Aussies are already struggling with high fuel prices, electricity costs and an increase to the general cost of living expenses, yet the Reserve Bank’s so called brilliant solution to help people, is to hit us with 10 consecutive interest rate hikes.”

Mr Knuth added the claim that the Reserve Bank wants to control inflation and stop a recession means nothing if millions of Aussies lose their homes and are out on the street.”

Mr Knuth said new research from the Centre for Future Work also shows that corporate profiteering – driving up costs to maximise profits – has played a major role in Australia’s current inflation crisis. According to the research the Reserve Bank of Australia’s nine consecutive interest rate increases are based on an incorrect premise.

“While the banks and big business are enjoying record profits through increased cost of living prices, ordinary Aussies are being told that it is their excessive spending that is causing inflation,” he said.

“However, every person I speak to, cannot afford luxuries and are flat out buying the basic essentials to survive, so excessive spending is well out of reach for the majority of Australians.

“I see so many families finding it hard to make ends meet, yet the RBA’s only goal seems to be to blame them and hit them even harder.”

Mr Knuth said Australia’s big four banks, despite record earnings, (with the NAB recently announcing an 18.7 per cent rise to $2.15 billion in cash earnings for the first quarter of 2023 compared to 2022) will again use the rate rise as an excuse to pass on the rise to average homeowners and add to their already significant profits.

“It’s an obscene merry go round. The RBA is simply feeding the big banks and big business with an excuse to further slug customers and post even larger profits. Where does it end?”