By the time they realised inflation was entrenched, it was almost too late and they were forced to act with undue haste with a monetary wrecking ball that now is wreaking havoc across the developed world.
None of them, however, are enduring the kind of attack being meted out on Dr Lowe. But there are good reasons for that.But nowhere is the pain likely to be quite so severe as Australia. A lethal combination of insane levels of household debt — most of it in mortgages that, unlike the rest of the world, are either variable rate loans or fixed for only a short time — magnifies the impact of rate hikes here on homeowners, particularly new ones.
Under financial pressure, they rein in the spending, which then quickly flows through to the broader economy.neatly sums up why we are unique. It measures the percentage of home loans written after 2020 across the developed world that are vulnerable to rate changes.In the US, most housing loans are fixed for up to 30 years. So, unlike here, pushing through a rate hike has little impact on American households or their spending.
It is a key difference that seems to have eluded many economists, money markets and the RBA, which now appears determined to ape its global counterparts and keep on hiking in a bid to avoid the "even worse effects of inflation".The governor drops a bombshellThe speed and severity of the RBA's rate hikes is unprecedented. From zero to 3.35 per cent in under a year.
According to Dr Lowe, at least 75 per cent of our inflation problem is from external forces: supply issues we can't do anything about and that rate hikes won't fix.
forget the War in Europe, this is about the propping up during corvid and the flooding, fires, droughts! over the last few years!
Albo Scapegoat.
Labor deflecting blame for their usual economic incompetence!
Why not put the spot light on APRA who observed all these risks yet did nothing - isn't it there mandate? Blaming Phil Lowe for raising rates - which is his responsibility given the global climate - is nothing but political theatre.
Only as portrayed by bully thug oz media hacks
. The media has TOTALLY misrepresented this issue to stupid Australiia. The RBA has one mandate & one lever. The govt has the responsibility & dozens of levers. Govt policies created this housing bubble, not just rates. Shorten said it but greedy, stypid Aus didn't listen. .
Hahaha he NEVER been a good governor throughout his whole career.
Inflation is theft
Bloody hell, the propoganists at the ABC are working overtime to protect this prick. Seriously, you normally only get this level of characterisation after some priveledged, white father murders his whole family.
More Labor blame game and pulling the wool over the eyes of Gen Z.
Opinion pieces are not news and should not be disguised as news. Get off my feed.
The actual danger is socialist lite JEChalmers supported by the public funded propaganda & ‘newspeak’ department aka radical left 🥴🌭🇦🇺 auspol
I'm boohooing poverty tears
This happens every time we hit this part of the economic cycle. Philip Lowe didn't create this situation but he's an easy target as he's charged with fixing it.
The govt has abandoned the field on economic growth, productivity, inflation & rates, leaving the heavy lifting to the rba. Govt & its abc cheersquad trying to throw Lowe & rba under a bus. Inflation at 7.8%… rates going up! up again next month! Not rocket science. Same ol Labor
A good lesson for those who have never experienced increasing interest rates and never thought they would.
ABC running deflection campaign to protect the incompetent Chalmers and Albo. Heard of Fiscal Policy ABC?
He has too much fun just thinking of the pain he is causing everyday Australians. He works well for his masters
His crime was to raise rates in a nation addicted to debt.
having somebody to blame is looking like its time to get a better spin doctor on inflation cause
The biggest dupe of all is that the RBA is 'independent' of government . It undertakes the government's bidding to the letter when told to buy a trillion or 2 dollars of Government Bonds.
when you print trillions of dollars world wide, rates need to increase, who would have thought
Why blame Lowe, he didn’t not create this problem, it is global issue, he is just trying to find a solution for Australia.
The media have to turn on Lowe as a scapegoat for their beloved Labor.
Allow me to play the world's smallest violin for a central banker.
Old school economics to keep the wealthy wealthy…
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