The Reserve Bank doesn't know what it's doing

Yesterday afternoon, the Reserve Bank of Australia lifted rates for the third time in three months – raising the cash rate by a full 50 basis points to 1.35%.

The rise will lift interest rates to their highest levels in years and put more pressure on household budgets, but it’s something the RBA says is necessary to bring down inflation.

However, the RBA’s decision comes just as questions are being asked about how the institution is working, and whether it’s acted too slowly in the past.

Today, national correspondent for The Saturday Paper Mike Seccombe on why the Reserve Bank is so secretive, and the push to change it.

Guest: National correspondent for The Saturday Paper, Mike Seccombe.

See omnystudio.com/listener for privacy information.