The Reserve Bank, which appears to have only one weapon in its fight against inflation, today raised interest rates yet again - the third rise in six months.

The Official Cash Rate is now 7.0%. The RBA has lifted rates repeatedly (now at their highest level since mid-1996) to rein in inflation. Clearly it?s not working, but clearly the RBA doesn?t have a Plan B.

Their actions are in stark contrast to the United States Federal Reserve, which has cut 1.25 percentage points off interest rates in the past month.

The HIA?s managing director Ron Silberberg says: ?Monetary policy is a blunt instrument and its impact on Australian households battling to make ends meet must be considered in more detail ? Because the Consumer Price Index seems to be driving monetary policy, it is ovedue to review the structure and composition of the CPI.?

Ironically, the upward cycle in interest rates may benefit property investors. It further restricts the ability of households to buy a first home and it further discourages developers from supplying new