The Reserve bank of Australia (RBA), which serves Australis's central bank, employs policy to pursue its objectives of price stability, full employment and the economic prosperity and welfare of the Australian people (based on RBA Website). The RBA has a history of success in achieving these goals in the functioning of the economy, including maintaining the Consumer Price Index (CPI) between a 2-3%. However, The Reserve Bank's decision to increase the cash rate target by quarter of a percentage point, taking the benchmark interest rate to 4.35%, is a monetary policy action as its highest rate in 12 years (based on website