RBA Deputy Governor Calls for Consumer Action Against Unfair Pricing
Reserve Bank of Australia deputy governor Andrew Hauser has publicly urged shoppers to "vote with their feet" when encountering questionable corporate pricing strategies, as inflationary pressures continue into the new year. Speaking on the Guardian's Australian Politics podcast, Hauser acknowledged widespread frustration with companies "taking the P" through price increases and shrinkflation tactics.
Understanding Corporate Pricing Strategies
"People will take views about particular corporate strategies and pricing, and we saw all of that during Covid, didn't we, shrinkflation and all the rest of it," Hauser stated. He expressed confidence that consumers would naturally respond to perceived unfair practices by changing their purchasing behavior. "I hope people, [and] I'm sure people do, vote with their feet when they think that companies have been taking the P."
These remarks align with Prime Minister Anthony Albanese's previous criticism of supermarkets allegedly "taking the piss" with pricing strategies. Recent court cases have examined allegations of misleading discount practices by major retailers, while the consumer watchdog has raised concerns about supermarkets charging for fresh produce by item rather than weight.
Inflationary Pressures and Economic Context
Hauser, who relocated from the United Kingdom to work alongside RBA governor Michele Bullock in 2024, acknowledged that price increases create significant pressure on household budgets. However, he emphasized that inflationary pressures are not driven by any single sector of the economy. "While people may feel that some of the drivers of inflation are unfair or against their interests," he noted, "inflationary pressures were not being driven by any one sector."
The upcoming release of January's inflation figures will provide crucial data following the RBA's recent cash rate increase. Hauser identified several factors contributing to price rises, including an unexpectedly strong global economy, recovering household incomes, and increased business investment in areas like datacentres.
Defending the RBA's Position and Mandate
Hauser strongly defended the RBA's approach to monetary policy and its relationship with government. He stated that criticizing the Albanese government's spending choices falls "beyond the remit" of the central bank's "unelected technocrats."
"There's a vibrant public debate about public spending and long may that continue," Hauser commented. "I just think that is our job, frankly, to try and get inflation back under control and to maintain full employment."
Responding to Political Criticism
The deputy governor directly addressed recent criticism from Liberal shadow treasurer Tim Wilson, who suggested the RBA had been "confused" about its core purpose. Hauser firmly rejected this characterization, explaining that the bank has consistently focused on inflation while making strategic decisions to support employment when appropriate.
"The labour market has performed very well," Hauser asserted. "I'm sure the shadow treasurer and everyone else is not criticising that." He confirmed that the RBA raised interest rates in early February and would implement further increases if necessary to control inflation.
Banking Sector Dynamics and Economic Momentum
Hauser highlighted surprising developments in the banking sector, particularly the explosion in bank loans following 2025's rate cuts. He attributed this partly to the banking industry's pursuit of profits, noting that "Australian banks are very strong" with new CEOs needing to justify high valuations.
While potential interest rate rises have slowed lending momentum and created challenges for mortgage holders, they have simultaneously benefited savers and wealthy investors through increased returns. Hauser acknowledged this tension but warned that high inflation would ultimately worsen economic inequality.
Accepting Unpopular Decisions
The deputy governor addressed perceptions that the RBA favors specific economic groups, stating, "I sometimes hear this, 'you're the fat cat brigade in there to help out bankers' ... no, from time to time those people are as angry and cross with us as [others]."
Hauser humorously compared the RBA's position to a notorious English football chant, suggesting the bank must sometimes accept being "equal-opportunity disliked." He concluded, "I guess everyone hates us. We don't care," emphasizing the institution's commitment to its dual mandate regardless of popularity.
