Why more interest rate rises are the ‘only tool’ available for RBA to curb inflation

Interest rates are the “only tool” the Reserve Bank of Australia (RBA) has left to battle inflation pressure, according to a respected economist.

Mortgage holders are bracing for another rate rise in August amid persistent inflation figures, but economist Saul Eslake wonders whether there’s anything more people can do to try rein in spending even further.

Click PLAY to hear Saul Eslake’s analysis on inflation on 3AW

“Interest rates are the only tool (the RBA) have (to curb inflation),” Mr Eslake told 3AW Drive.

“A question might be – is there anything anyone else people can do to slow growth and spending in order to bring (prices) more into line with goods and services.”