Tom Elliott explains why the seemingly inevitable interest rates rise doesn’t stack up

Tom Elliott says the seemingly inevitable interest rates rise that is coming next week shouldn’t happen.

He says it doesn’t stack up.

It’s widely expected the Reserve Bank will lift the interest rate after inflation soared from 3.5 per cent to 5.1 per cent – the highest in more than 20 years.

Tom Elliott says it seems all but certain the rate would rise next week, but it shouldn’t.

“All of these reasons why inflation is increasing have nothing, whatsoever, to do with interest rates,” the 3AW Drive host said on Thursday.

“You only put up interest rates when prices go up so much because demand is going through the roof and that is not what we are seeing.

“Putting up interest rates will not fix the war in Ukraine, it will not stop the Taiwanese chip shortage, it will not stop the Chinese sanctions on Australia, it won’t suddenly get more foreign workers into Australia to pick fruit and vegetables.”

Press PLAY below to hear Tom Elliott explain