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Rate rises a ‘blunt weapon’ to fight inflation

Business columnist Terry McCrann says interest rate rises are a “blunt weapon” to fight inflation, following the Reserve Bank of Australia’s decision to lift the cash rate by half a percentage point to 1.85 per cent.

“But we’ve discovered over the years that we can’t trust governments to do it,” Mr McCrann told Sky News host Andrew Bolt.

“That’s why we gave it to the Reserve Bank in 1996 and … made the Reserve Bank independent with that very specific target.”

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