RBA chief Michele Bullock has urged people not to be concerned about the central bank’s inaction on interest rates, saying it is just a temporary measure that will be addressed once everyone is living in a tent.
Responding to the latest date which showed unemployment on the rise, Bullock said people were too caught up in things which could affect their lives.
“A lot of people seem to be anxious about this and feel that we should do something to address economic hardship now, rather than once it’s too late. But I do want to reassure Australians that as soon as we’re in a proper recession and people are pushed into financial ruin, we’ll lower rates. Relax – we’ve got it under control,” Bullock said.
She said as a central bank whose only job was to adjust interest rates, there was little they could do about interest rates. “It’s tricky when everyone is saying that interest rates should fall – we are in a bit of a bind in terms of the levers we can pull. But the pain is almost over. Let’s just wait until unemployment levels peak and spending falls further and then we can have a look at those rates. And then we can all get back to enjoying life without having to think about it anymore”.
A version of this story was originally posted in 2023
