It seems that rising value of Australian dollar is hurting the economy beyond expectations. While countries across the world are grappling with inflation, Australia seems to be aloof to it. It has been told by the Outspoken Queensland MP, Bob Katter, that there is need to find ways to lower down the value of currency.

There is significant pressure on the Reserve Bank of Australia (RBA) to reduce interest rate, but nothing much effect of it has been found so far. As of now, the value of cash rate is 4.25%, and that needs be bring down further to deal with the crisis.

There are chances that board members would be booted out if significant action is not being taken by the RBA. There seems to be bleak chances of any political involvement as far as this issue is concerned. "But its independence doesn't extend to the government of Australia abrogating its responsibilities to control the economy”, added the founder of the Katter's Australian Party (KAP).

There has been a significant impact of the rising Australian dollar on tourism sector on an average which has pushed the issue to this extent. As compared to others countries like the United States which has interest rate at 0.25%, Japan at zero and European countries at nearly 1%, there has been lots more to worry for Australia in this regard.

There are discussions going on to extend financial support in ethanol production and a power transmission line across northern Australia and that could rope in investors in these government-supported projects. Perhaps this step could stabilize the dithering condition of Australian economy. It has been made clear this time results are required to be derived out from economic decisions taken so that the various economic sectors like tourism, manufacturing, agriculture and mining could be given the much needed support.