Interest rates question involving Paul Keating era?
Why did the Reserve Bank of Australia set interest rates so high in the late 1980s and early 1990s?
- Anonymous1 decade agoFavorite Answer
I'm not an expert on Aussie history, but it would be my assumption that high interest rates in Australia back in the 80s/90s were because of inflation. And the best way to curb inflation is through increasing the cost to borrow money and to slow the economy.