Australia’s inflation reality has shattered hopes the Reserve Bank can keep interest rates at the lower end of the G10 pecking order as rates traders determine the central bank is on the way to a 4 per cent cash rate.
NAB head of market economics Tapas Strickland believes the RBA has revealed itself to be less tolerant of inflation running above target, projected to linger above its 2 to 3 per cent band until the second half of 2025. “There’s been a change in how they’re evaluating those risks stemming from the Q4 CPI data which suggested more entrenched inflation in the economy. This has driven a wholesale review of the willingness to balance the risks of running a recession or subpar growth versus getting inflation back to target.”Forecasters hoped Australia would be spared from the cash rate levels expected for other developed economies with its highly leveraged households.
how does he still have his job? lied to all n sundry and people are now suffering big time...disgrace!
Won't happen fear mongering
I guess if hoards of people default on mortgages, can't afford skyhigh rent, energy bills and everything else then inflation will go down because people won't be able to afford to eat or cloth themselves. Cunning 🙄
And Labor just keeps spending and promises to spend even more
And they will still be deeply negative, causing even higher inflation, obviously their goal, inflate away the unplayable debt = we pay for their crime against us.
Is it finally time to panic?
Double digit retail interest rates by this time next year. Screen shot this
The government is doing nothing to curb inflationary pressures or cost of living crisis . We need the government to introduce proper fiscal policy to curb inflation and not just print money and give more handouts
GOOD it’s not their damn job to give a single shit about “property investors”
Good news. Australia's young people may be able to afford shelter in a few years. Still a ways to go though
I can only hope!
They should had not to let the genie out
It is a world response to inflation not just a stand alone Australian problem.
Stop peddling rate hikes 😡
So when will they Crash The Market they clearly have lost control of this and need to replace this Fiat Currency to a GOLD BACK DOLLAR at what stage will they admit this and will they admit it will be Digital, cause the Petrol Dollar is dead
Great news
Awesome for us Savers
Raise the GST temporarily. Use the GST as a tool to curb inflation. Should be targeting 100% of the publics expenditure not the 30% only with a mortgage. RBA is incompetent, stubborn, and unwilling to look outside the box.
A quick look at wages, house prices, rates, interest costs says anything above 4% is a complete slaughterhouse
Bwahaha….if that happens the windows will blow out of every household in the country. Either from their mortgages or the fall in household wealth from the ensuing house price bloodbath. Famous last words possibly but despite their economic theory of neutral rates housing rules
About time. Inflation is a lot larger threat than Interest rate rises. Most inflation is caused by companies profit gouging, normally while paying little in tax or royalties. Australia is the largest exporter of Gas, we should be rich, not broke.
Are you sure 4.85%? More like 3.85%
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