Reserve Bank governor Philip Lowe fears Australians could find themselves lost in one of Dante’s circles of hell - the one named inflation.
But before his crowd started to believe the bank was about to seek absolution for its past mis-deeds, Lowe effectively warned them to abandon all hope of financial relief: the RBA is not yet finished with rate rises.“It is a scourge. High inflation devalues your savings. It worsens inequality in our societyour economy,” he said.He went on to note that if the bank did not increase rates, as some have suggested they should not, the circles of hell would slowly constrict the country.
Despite the hefty increase in mortgage rates - equivalent to more than $1000 a month on an $800,000 mortgage since May - the bank has upwardly revised its inflation outlook.Yet, the RBA now reckons inflation will be around 4.75 per cent at the end of next year and “a little above” 3 per cent at the end of 2024.But Lowe also revised down the RBA’s outlook for economic growth. It was tipping growth to average 1.75 per cent over the next two years, but that now looks around 1.5 per cent.
As Lowe noted, the bank is trying to walk a difficult trail and “we could be knocked off that narrow path”.
swrighteconomy We wish you a merry Christmas We wish you a merry Christmas and a happy new year .. 👎
swrighteconomy It has to lift rates to match the US to keep the exchange rate in check. Otherwise the winter holiday to Aspen will be far too expensive.
swrighteconomy I would like him to explain how due to his incompetence people are now paying the price. He failed to act accordingly to stop the economy being in this state. He had one job and has failed at it. Anyone else would be sacked for incompetence.
swrighteconomy the housing market is still at crazy prices............why
swrighteconomy It worries me greatly that these clowns are running the show and have an impact on our lives.
swrighteconomy Burn it down 🔥🔥🔥
swrighteconomy Yep. RBA is soo g it’s job. Albo and jimbo are just spectators.
swrighteconomy Surely we can all come together and sue the RBA for 'rug pulling'
swrighteconomy
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Reserve Bank lifts interest rates to nine-year high of 2.85 per centRBA governor Philip Lowe acknowledged that rates had risen “materially” since May but said the board expected to increase them further over the period ahead. Typical. I've struggled my ass off to get to build a house, and a few months before it's finished the interest rates are soaring. Guess I'll just stay poor.
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Source: SkyNewsAust - 🏆 7. / 78 Read more »
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Source: 9NewsAUS - 🏆 10. / 72 Read more »
RBA gallops to 2.85pc cash rate, inflation to hit 8pcThe Reserve Bank of Australia has increased the official interest rate by 0.25 percentage points, the seventh straight rise with more expected to follow. Might be time to read this ladies and gents. Bitcoin 🚀🚀🚀 Should’ve done 50bps. Only 25bps is to protect over leveraged home owners with mortgages, at the expense of everyone else (wage earners, savers, retirees on fixed incomes) suffering from double-digit grocery bills & shelter costs. Household debt servicing ratios at record highs!
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