The Reserve Bank

People are blaming the Reserve bank for higher interest rates, but that is kind of getting ahead of the story.

We are experiencing inflation because business can't keep supply up to the demand in the economy. That is because of the pandemic lockdown finishing, I am guessing, where we all saved our money instead of spending it, and now we want to spend it. There are also supply chain issues as well, due to various issues.

It is the inability of business to keep up with our demand which is the problem, which in a sense means we all have plenty of money to spend, but there aren't goods and services to satisfy our demand. 

So, the Reserve Bank needs to reduce that demand so it matches supply, so then inflation reduces, because you can't have prices spiralling out of control unchecked.

The Reserve Bank is, actually, the solution, not the problem.

You can blame the business world, more so than the Reserve Bank, but I don't hear people blaming the business world.