Open the gate.. welcome to this dimension..
Yeah all great news.. not..
The thrust here is the RBA knows that as they hike rates the effects are pretty heavy due to the high percentage of variable rate mortgages in Australia (quoted as 60% in article)..
From a government perspective, slower interest rate hikes and longer inflation means: debt servicing costs are kept lower longer, and higher inflation for longer depreciates (lowers) government debt for free! Yay! Happy government!
As the policy runs it also has the effect on keeping the A$ weaker which is good for corporate exporters too.. Yay! Happy Corporates!
Who's paying? You and me of course. Because what's good for government and corporates has the opposite effect for your average punter everywhere - it's more expensive to borrow money, it's more expensive to buy everything..
And of course your wages are going up to compensate for all these price hikes?.. yeah.. nah.. 😛
It all has quite nice tax and profit margin side effects too. As everything inflates the take from all forms of tax (GST, stamp duties etc) gets a nice little boost. And profits are a function of revenue so if you inflate overall pricing then profits rise too! Yay! And whose paying those increased taxes and profits?
You guessed it!
Well done suckers, you've passed your test! - you're are being fucked over by government and corporates using the very policies they are telling you they must implement in your interest to deal with a problem they created in the first place. Russia isn't the only state who routinely uses propaganda..
buggered if I know 😛
Australiaâs Policy Downshift Hindered by Global Tightening Wave