If the worst inflation figures in 22 years doesn’t force the Reserve Bank into the tiniest of official interest rate rises, what would?
The prices of non-discretionary goods have climbed by 6.6 per cent over the past year compared to 2.7 per cent for goods and services you don’t necessarily need. When the RBA board meets on Tuesday, there can only be one recommendation from governor Philip Lowe. Rates have to start going up, now.Credit:The Reserve Bank is now akin to the detective who has the smoking gun, the body, the culprit, a signed confession, a dozen eyewitnesses and CCTV footage of the murder.
The reality is if the Australian economy cannot withstand a cash rate above 0.1 per cent without the jobs and property markets crashing to a halt then we truly have entered some Agatha Christie wormhole.
swrighteconomy And is a rate rise gonna reign in the “non discretionary” prices where rises have been highest? Raising rates now will not beat inflation unless you think people will reduce their tomato consumption. Wright should’ve explained how he thinks rate rise will help households.
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