Why can't the RBA spend to build the country? - Senate Estimates 10.11.22

If the RBA can spend $300B to destroy the economy, why can't it spend $300B to build the country?

In estimates I quizzed the RBA as to why they are using austerity measures rather than productivity measures to manage the economy.

Austerity measures via sharp interest rate increases are only hurting the battlers who don’t deserve to suffer because of prior flawed decisions. It does nothing to control inflation as higher interest rates are a form of inflation themselves.
Furthermore it is a redundant measure and quite frankly cruel measure as demand is already being dampened through higher fuel and energy costs.

There are three ways to manage monetary policy:
1) qualitative - controlling interest rates
2) quantitative - controlling volume of capital
3) macroprudential - controlling lending terms and conditions
The RBA/APRA (APRA used to be a part of the RBA) are showing their ignorance of monetary policy by only using qualitative measures.

They should also be using quantitative measures to increase the supply of essential services by building dams, power stations and transport infrastructure.

As Australia’s population grows, the need for greater credit in the system should be supplied by the RBA through equity backed infrastructure, not unsecured foreign debt.

Finally rather then drive existing mortgage holders out of their homes they can tell the banks to lower the amount of money they lend on housing so that people don’t over borrow in the first place. I.e. macroprudential measures.

It’s important to note interest rates should increase, but not at the speed the RBA is going at. It’s also important to note that the RBA should have never lowered interest rates so low in the first place, which has created a bubble that is going to cause a lot of pain as it deflates.