What if the Reserve Bank itself has been feeding inflation? An economist explains

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What if the Reserve Bank itself has been feeding inflation? An economist explains

Here’s something for the board of the Reserve Bank of Australia to ponder as it meets next month to set interest rates. It has pushed up rates on 13 occasions since it began its attempt to restrain inflation in May 2022. On each occasion, its rationale was that by making borrowing more expensive, it would take money out of the economy. Yet, at the same time, it has also been pushing money into the economy and potentially feeding inflation. It he…