RBA Deputy Governor Advocates Consumer Action Against Unfair Pricing
Andrew Hauser, the deputy governor of the Reserve Bank of Australia (RBA), has publicly encouraged shoppers to "vote with their feet" in response to what he describes as companies "taking the P" with deceptive price increases and shrinkflation tactics. In a candid interview on the Guardian's Australian Politics podcast, Hauser expressed understanding of public frustration over specific corporate strategies that contribute to inflationary pressures, emphasizing that these issues are not confined to a single sector.
Defending RBA's Role and Addressing Government Spending
Hauser firmly defended the RBA's decision not to critique the spending choices of the Albanese government, stating that such commentary falls outside the remit of the bank's "unelected technocrats." He highlighted that the RBA's primary responsibilities are to control inflation and maintain full employment, rather than engaging in public debates over fiscal policy. "There's a vibrant public debate about public spending and long may that continue," Hauser remarked, underscoring the bank's focused mandate.
Inflationary Trends and Economic Outlook
With January's inflation figures set for release, Hauser warned that inflationary pressures have persisted into the new year, driven by factors such as a robust global economy, recovering household incomes, and increased business investment, including in datacentres. He noted that spending and jobs data indicate sustained economic momentum into 2026, but cautioned that another interest rate rise could follow if needed to curb inflation. The RBA recently raised rates in February, a move that has slowed lending momentum and impacted mortgage holders while benefiting savers.
Response to Political Criticism and Banking Sector Dynamics
Hauser dismissed criticism from Liberal shadow treasurer Tim Wilson, who argued that the RBA should prioritize inflation control over other goals. Hauser countered that the bank has consistently focused on inflation, only adjusting rates to support the labor market when price rises slowed. He also addressed the surge in bank loans post-2025 rate cuts, attributing it to the banking sector's profit-driven strategies and strong regulatory frameworks. "Australian banks are very strong," he said, noting that new CEOs are under pressure to justify high valuations.
Social Implications and RBA's Stance on Inequality
Acknowledging the unequal impact of interest rate changes, Hauser warned that high inflation could exacerbate inequality. He refuted claims that the RBA favors bankers, stating, "I sometimes hear this, 'you're the fat cat brigade in there to help out bankers' ... no, from time to time those people are as angry and cross with us as [others]." Hauser likened the RBA's position to being "equal-opportunity disliked," emphasizing the bank's commitment to its economic objectives despite public sentiment.
This stance comes amid ongoing concerns from the consumer watchdog about supermarket pricing practices, such as charging for produce by item instead of weight, which Guardian Australia found is becoming more common. Hauser's comments echo Prime Minister Anthony Albanese's earlier criticism of supermarkets "taking the piss" with price hikes, highlighting a broader societal debate over corporate accountability and economic fairness.
