Full Story Greg Jericho on the 'cowardly' rate rise
Feb 3, 2026
Greg Jericho, chief economist at the Australia Institute and Guardian columnist, critiques the RBA’s recent rate rise as almost cowardly. He discusses whether December’s inflation spike will drive more hikes, how travel and the Ashes lifted prices, the tradeoffs of acting now versus waiting, and policy levers like gas taxes and targeted support to ease pressure.
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RBA Acted Under Pressure
- The RBA raised rates mainly because it felt pressured by headline inflation and credibility concerns.
- Greg Jericho argues the move looked
Ashes And Travel Drove December Spike
- December's 1% monthly inflation jump was driven by travel and the Ashes, not broad domestic price pressures.
- Jericho says stripping travel and accommodation shows inflation would have been flat that month.
How Rate Hikes Actually Reduce Inflation
- Interest rates curb demand by reducing household spending and hiring, not by directly changing shop prices.
- Jericho warns the RBA's main tool works by hurting people and businesses to lower inflation.