Part 7/9:
The Reserve Bank maintains that its capacity to influence productivity and long-term growth is limited. While it can manipulate monetary policy—such as adjusting interest rates—it cannot control government spending or directly boost productivity. The RBA's recent forecasts have been downgraded, reflecting the challenges it faces in steering the economy amidst persistent fiscal expansion by policymakers.
Political Perspectives and Next Steps
Looking ahead to next week’s roundtable, O'Brien emphasizes the importance of scrutinizing current policies. He opposes ideas such as taxing unrealized capital gains, especially within superannuation funds, and advocates for policies that do not further burden businesses or future generations through increased debt.