The Reserve Bank has increased the cash rate by 0.25 percentage points to 3.85 per cent, in its first rate rise in more than two years. The Bank is responding to inflation, which picked up materially in the second half of 2025.
Sustainable Population Australia (SPA) argues that Australia’s rapid increase in population growth is a key contributor to inflation and that reducing Net Overseas Migration (NOM) to 70,000 per annum will mitigate inflationary pressures.
SPA experts are available for further comment.
Peter Strachan – National President, Sustainable Population Australia
Email: president@population.org.au
Phone: 0412 400 952 - after 06:30am AWST (or 09:30am AEDT)
Quotes attributable to Mr Strachan:
“In the three years to June 2025, Australia’s population increased by 1.6 million 79 percent of which resulted from immigration. This is an increase of more than 1.5% per year.”
“Rapid population growth exacerbates aggregate demands for all goods and services. Surging population driven demand, overheats the economy, resulting in inflation.”
“The Australian Bureau of Statistics (ABS) only counts permanent residents in its population figures. Australia’s actual population is likely to be 29 million, or a million more than official estimates when counting short term residents, placing further unanticipated demand on Australia’s strained economy.”
“Successive federal governments have pursued aggressive Big Australia policies to keep demand artificially high and mask a slowing of per capita consumption. However, these very policies try to fight fire with fire, over inflating the Australian economy and, in turn, reducing purchasing power of everyday Australians.”
“The best solution is to reduce Net Overseas Migration (NOM) to around 70,000 per annum, which will stabilise Australia’s population at below 30 million. This will provide the economy with the ‘cool down’ it so desperately needs, allowing supply to keep pace with demand and reduce inflationary pressures on the Australian economy.”
Michael Bayliss – Communications Manager/Spokesperson, Sustainable Population Australia
Email: media@population.org.au
Phone: 0423 701 611 – after 06:30am AWST (or 09:30am AEDT)
Quotes attributable to Mr Bayliss:
“Housing is where the interest rates will hurt the most. This rise in interest rates will add approximately $110 to the monthly cost of servicing the average-sized $700,000 mortgage.”
“The Federal government has an over-ambitious target of building 1.2 million homes in under five years, to cater for the demand that it has self-engineered. While falling well short of its target, ongoing demand within the construction sector has nevertheless placed extraordinary inflationary pressures on new dwelling construction”.
“At a time in which the economy is spinning out of control to keep pace with housing demand, both Federal and state governments have doubled down on expensive public infrastructure projects, such as Melbourne’s Metro Tunnel Project. This further exacerbates demand within the construction sector. None of these projects would be necessary if it weren’t for high population growth.”
“Government policy failures on gas and electricity pricing also drive inflation. Treasury must take responsibility. This will not be solved through the blunt instrument of interest rates. Unfortunately, the rhetoric from Jim Chalmers in response to the interest rate hike has been defensive and deflective, preferring instead to blame the Australian public.”
About us:
SPA is an independent not-for-profit organisation seeking to protect the environment and our quality of life by ending population growth in Australia and globally, while rejecting racism and involuntary population control. SPA is an environmental advocacy organisation, not a political party.
