In tough times, government and RBA walk a tightrope
In his regular column exclusive to API Magazine, Tim McKibbin, CEO, REINSW, argues the Reserve Bank of Australia should take a step back from its rate hike cycle to allow borrowers a chance to regroup.
The official cash rate has hit 2.85 per cent and debate now centres on whether the RBA should hold back or continue lifting interest rates. (Image source: Shutterstock.com)
The Federal Budget has been handed down and the economic picture it paints is not pretty. Times are tough and there are tougher times ahead.
Housing is cited as one of the key industries contributing to high inflation. Though the CPI figure was the highest in decades, the cost of housing – rent, building materials and the like – actually outpaced inflation.
Yet house prices are on the decline. Rather unhelpfully, the Reserve Bank of Australia’s…
