Sorry, what? The latest interest rates rise suggests the RBA board is completely lost to logic

‘The RBA suggests it might still raise interest rates further. At this point, who the heck knows.’ Photograph: Flavio Brancaleone/AAP

The Reserve Bank’s decision to raise the cash rate on Tuesday to 3.85% suggests a board completely lost to logic and we should be thankful that soon the decision to change rates will be taken out of its hands.

Last month, when the RBA decided after 10 straight meetings to keep the cash rate steady, it presented a number of reasons. The chief was that “a range of information, including the monthly CPI indicator, suggests that inflation has peaked in Australia. Goods price inflation is expected to moderate over the months ahead due to global developments and softer demand in Australia.”