Dr Bronwyn Kelly's column argues that Treasurer Jim Chalmers should heed former RBA Governor Bernie Fraser's criticism, made in the 2026 Bernie Fraser Oration at the Australia Institute, that interest-rate policy will do little to solve inflation. The author warns that the RBA's aggressive rate increases risk pushing the economy into recession as unemployment rises, house prices fall and consumer confidence plunges. Fraser said the RBA has drifted from its founding charter, which set full employment and currency stability as core goals, since the late 1990s, and that the late-2024 amendment adding price stability made rising unemployment a tool for price control. The column also says monetary policy is at best useless and at worst harmful for price stability, though it can help investment by small businesses.
Summary written by Upside AI from the original article. Read the source for full details.
Original headline: Timely advice to Treasurer Chalmers : Stop relying on the RBA
Read the original on australiannews.net ↗
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RBAinterest ratesinflationAustralia
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Related tickers and likely impact
AUD/USD
• NeutralRelevance: low
| Market | Currencies |
|---|---|
| Close on 10/21/2026 | 0.70288 |
| Change that session | +0.35% |
Impact is scored by AI from the headline and may be wrong. It is not investment advice.
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