Australia’s RBA remains stubbornly behind
November 25, 2021 Leave a comment
This article failed to mention that Australian’s are the 2nd most indebted citizens (% of household debt to GDP) in the world.
As a result, raising interest rates will add to mortgage repayment stress.
Furthermore, the meeting minutes of the Korean and Kiwi centeal banks cited soaring residential real estate prices along with rising prices (inflation) as reasons to hike rates.
The Aussies only talk of the latter.
Rates eventually dohbking would hurt the indebted Australian home owner terribly. The rising net interest margin will make the banks a fortune but only to a point where defaults don’t ramp up.
Banks like taking deposits and lending money. They don’t want to become landlords.
See how the RBA is in a combination of being the curve or between a rock and a hard place?
November 25, 2021
by Rob Zdravevski
rob@karriasset.com.au
rob zdravevski's blog 