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 society and it undermines our living standards. It hurts us all by impairing the functioning of our economy,” he said.
“If this were to happen, the evil of inflation would be with us for longer and the eventual increase in interest rates needed to bring it down would be greater,” he said.“This would increase the risk of a severe recession and a sharp rise in unemployment. It would be much better to avoid such a costly outcome and so we have acted strongly to avoid it.”
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.
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Abandon all hope ye who believe the RBA has finished lifting ratesIt may lack gluttony, wrath and lust, but RBA governor Philip Lowe has painted a picture of financial hell if interest rates do not bring down inflation. swrighteconomy swrighteconomy Surely we can all come together and sue the RBA for 'rug pulling' swrighteconomy Yep. RBA is soo g it’s job. Albo and jimbo are just spectators.
Source: smh - 🏆 6. / 80 Read more »
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.
Source: brisbanetimes - 🏆 13. / 67 Read more »
Interest rates lifted to nine-year high to tackle ‘the evil of inflation’RBA governor Philip Lowe acknowledged that rates had risen “materially” since May but said the board expected to increase them further over the period ahead. rachelclun swrighteconomy Thanks Albo. Killing it mate. rachelclun swrighteconomy Looks like the RBA is battling to save the housing market rather than really tackle inflation. rachelclun swrighteconomy How does hurting the poor who carry bank loans and benefiting the rich who lend the poor money lower inflation. It makes the rich who do all the spending spend more. The poor in debit have nothing to spend. Add tax to luxury goods. Simple solution
Source: smh - 🏆 6. / 80 Read more »
RBA set for seventh straight rate riseThe Reserve Bank of Australia is set to raise interest rates for a seventh straight month in an effort to slow rising inflation. The RBA is expected to lift the cash rate by either a quarter or half a per cent, which would take rates above three per-cent for the first time since 2013. US global interference, incompetent sanctions on Russia, the US deliberate collapse of Western economies has led the west into this current crisis... But let's just avoid the cause and deal with the effects, so US global terrorism can engineer another crisis with impunity..
Source: SkyNewsAust - 🏆 7. / 78 Read more »