If the RBA gets its job wrong, the PM will pay with his

November 4, 2026 — 5:00am

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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.

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 to basics. If you already knew what follows, give yourself a pat on the back.

It’s lucky inflation is falling. Most of us don’t even understand what the Reserve Bank does

Shane WrightSenior........

© The Age