The Reserve Bank has acted decisively on data which shows that excess company profits are largely to blame for inflation, ingeniously upping the monthly mortgage repayments for a family who can’t afford it.
“When big businesses are pushing up prices and announcing record profits, the best way to respond is to push Julie and Trevor Smith from Werribee to the brink of bankruptcy,” Reserve Bank chief Philip Lowe said.
He said his message to businesses was clear. “If you gouge your customers by unreasonably increasing prices, then we’re going to make sure Jenny and John in Woodville South are going to pay the penalty”.
Young parents Samantha and George Hallam said they were pleased to be able to do their bit for the economy. “When you see the Commonwealth Bank announcing a half-yearly profit of just $5.15 billion, you just want to do what you can to help out”.
