Everyone thinks the RBA is done. They’re wrong
2d 17h ago by slrpnk.net/u/hanrahan in ausfinance@aussie.zone from archive.md
paywalled version
https://www.afr.com/policy/economy/everyone-thinks-the-rba-is-done-they-re-wrong-20260614-p606om
The cash rate needs to rise to at least 5 per cent to have any chance of sustainably returning inflation to target. If it’s not 5 per cent, then it’s something closer to 6 per cent.
The inability to contain inflation over the past two years should have taught the RBA that the real cash rate needs to be much closer to our potential growth rate, which we know is 2 per cent annual economic growth.
I disagree with the premise of the headline but I agree with the article
(to clarify that's with the orthodoxy of which we live , which i disagree with completely as in anyway sane )
The cash rate needs to rise to at least 5 per cent to have any chance of sustainably returning inflation to target. If it’s not 5 per cent, then it’s something closer to 6 per cent.
The inability to contain inflation over the past two years should have taught the RBA that the real cash rate needs to be much closer to our potential growth rate, which we know is 2 per cent annual economic growth.
tbh I just don't think it's that bad, I don't see this cost of living crisis as being that bad, housing sure, but cost of living?
how to have a cost of living crisis and seeing apple store and shopping centres packed?
Housing 100% seems to be top priority / immigration