Inflation is 4.3 per cent. Unemployment is 4.7 per cent. Every time inflation rises, some people seem to think there is only one answer—raise interest rates. But the Reserve Bank has two responsibilities under the law—not one, but two: price stability and full employment. Interest rates can reduce demand, but raising mortgage repayments won't bring down global oil prices and won't lay a single brick for the homes Australia desperately needs.

Meanwhile, our commercial banks have been busy cutting jobs themselves. NAB plans to cut 2½ thousand positions, ANZ announced around 3½ thousand staff departures and, according to the Finance Sector Union, the Commonwealth Bank has cut more than a thousand positions this year. They call it 'restructuring'. Workers face uncertainty about their livelihoods. I don't expect banks to act as charities, but I certainly don't expect the Reserve Bank to treat Australian jobs as expendable. Its independence is important, but independence doesn't mean immunity from criticism. Interest rates are one lever; they are not the entire toolbox. We need more housing, more skilled workers and more affordable energy. Inflation hurts working Australians, but unemployment does too. A lower inflation rate is a cold comfort for someone who has lost their pay packet. We cannot fix the cost of living by costing Australians their jobs.