RBA Slammed for 'Smoking Hopeium' and Failing to Act on Inflation

Economics professor Richard Holden has criticized the Reserve Bank of Australia (RBA) for its handling of inflation, suggesting that it is 'smoking hopeium' and not taking decisive action to address the issue.

Holden's criticism comes after an 18-month listening tour by the RBA, during which time inflation rates have continued to rise. He notes that it is surprising that the bank required such a lengthy period of consultation to understand that people are unhappy about inflation.

In a sarcastic tone, Holden quotes Steve Carell from The Office: 'Oh my God! OK, it's happening. Everybody stay calm. Everybody stay calm. Stay fu**ing calm!' He implies that the RBA has been overly cautious and is now belatedly acknowledging the problem of inflation.

Holden suggests that the RBA has the power to address inflation through monetary policy, but is not using it effectively.