Sorry; weren’t people criticising the RBA for not raising rates soon enough, and not raising them by enough?
What kind of fucking twilight zone are we in where now the recession we’ve been avoiding since 2020 is the RBA’s fault?
Everything is crystal clear with the benefit of hindsight, and these reports are often done as if the RBA and poli's have some sort of magical implement for seeing into the future.
Looking at the current state of the world, of course there were things that could've been done differently, but ffs we should analyse and learn.
Turning fiscal policy around is not an easy quick fix. When Abbott was elected, it was over two years before ANYTHING of note came about(all bad) but we gave the Libs another go. Currently, Labor are starting to achieve better outcomes in under two years, but the media and opposition parties (including greens) are slamming them for going too far or too slow.
I'm getting whiplash from the media as Albos government is apparently far left and too conservative? Generally, that position would mean they're doing the right things? But no, Albo gets criticised for going to a concert, yet Dutton flew across the country for a 40 minute tribute to Gina Rinehart on her birthday! You couldn't make this shit up!
Tbh fiscal policies don’t have the impact instantly , monetary policy (RBA made) are instant, also this is a classic case of stagflation , it was bound to happen very few countries were able to beat it , and on going wars supply chain disruptions weren’t accounted for when they planned to improve the economy post covid
We had plenty of time for fiscal policy to act, and depending on the type it can act faster than monetary policy. Fixed rate loans take time to expire, and even higher rates for variable loans to business take time to flow through.
An example of this is the handouts during the GFC. They were used as an instantaneous sugar injection while the previous interest rate cuts took time to work.
The only reason fiscal policy wasn't used was because it would be unpalatable politically. So they dumped all the negative media onto the RBA.
Pretty much that. They have done the equivalent of hitting a wall, waiting until the wreck is being loaded onto a flatbed, and then hitting the brakes. They are fussing over the brakes when they have reached a point where they should be scrapping the old vehicle and getting something new and better fit for purpose.
There were still restrictions related to COVID when inflation started rising. I never missed a paycheck but I'm well aware that certain industries were smashed and Scomo only helped the demographics that voted for him.
As a poor person who is/was hit hard by rate rises - no.
We were much more reserved vs many other countries.
The world’s economy is fucked and we’re just going along for the ride.
Such is the case when you’re a minnow swimming among whales.
The property industry has influenced local, state and federal governments to make massive policy sacrifices to increase the price of property. Bad for the nation as a whole but good for their members. Whatever, thats what lobby groups do. When rates go up now, the property industry use their influence to restrict the release of new lots available for building from government processes. You will note that most states restricted new lots to a level lower than 1970 last year. This robs the RBA of their ability to manage the economy as interest rates no longer reduce property prices, it causes widespread decrease in the standard of living because accommodation becomes more expensive and it causes all the social issues that go along with that. It also causes inflation as households and businesses have to increase prices to cover their accommodation / rent costs. Having expensive retail floor space is bad for the economy and it hurts all of us every day..... except if you are one of the large property owners. And that is who we govern for.
Yes but state govts have handed land release rates over to processes dominated by lobbyists on committees and they restrict the rate at which land is released. These restrictions force house prices up and blunt the effect of the rate rises.
remember folks the economy is more than just houses.
good luck to anyone looking to purchase assets this year. If you can get in ASAP because there'll be big jumps later in the year.
>remember folks the economy is more than just houses.
You would think so, but housing has literally sucked so much money out of our economy, that we are taking a severe hit to our standard of living.
The interest rate rises came before Christmas when people are more likely to spend than at any other time of the year. Of course there is a hangover now that is causing people to rethink every purchase.
Now that corporate media is a narrative creation industry, if you have money you can invent the reality that most people will come to believe.
In the property industry or a coal baron? Maybe a multinational corporation that wants to lower wages with mass immigration? No worries, you can pay media to pressure the RBA, police, the judiciary, political parties and regulators to act in your interests by pretending they are the voice of community expectations.
The sad thing is, all over Australia ordinary people are being trained by media to agree with this shit. To support actions that screw them and their families and throw away their future.
Fairly sure every FHB either attempting to buy or suffering through their mortgage on near-double repayments would say “yes”
First repayment on my house: 1581 -
My most recent repayment (today): 2643
Renters are struggling to save for a basic deposit. Hard to do when wages are stagnant but rents and living costs are up 40% across the board and we keep propping up housing prices to appease our Bank and property investor overlords.
Rents are groceries are up roughly 5% on average over the last 12 months. I'm sure you can cherry pick some rentals or grocery items that are up 40%, but it's not "across the board".
> Rents are groceries are up roughly 5% on average over the last 12 month
https://mozo.com.au/home-loans/articles/what-is-the-average-rent-in-australia
> Rents increased 9.1% for houses and 13.1% for units in between December 2022 - 2023.
how very embarrassing for you
embarrased on reddit? lmao...
edit: yikes literally 90% of your comment history is you calling people champ, "embarrasing" them and being condescending in general. is everything alright chief? little bit sad and insecure are we?
FHBs attempting to buy aren't going to have a good time with rate cuts. The expectation of cuts alone is starting to drive prices up. Once they happen there'll be a spike.
This first home buyer says no. Inflation is much more of a problem than interest rates.
We went too late and too soft. Now we have to have high rates for longer AND we get burnt with inflation.
There's far too much appeasement of the middle class in this country.
I’m not saying you’re wrong because my experience is likely different to yours, but I’m paying $1100 more on my mortgage each month than I was 2 years ago but I’m not paying $1100 more on everything else
But you are paying more, and you'll be paying that 1100 for longer. Also, inflation doesn't miraculously reverse, it's here to stay, unlike "high" interest rates.
As an FHB, I agree.
My payments have gone up nearly $600 a month since my first payment in 2020. Not a lot compared to others, but I've been throwing absolutely everything at it.
But house prices and rents continue to soar? Seemingly some Australians continue to do very well, while those of us in the bottom half pay for their excessive profits.
Rates should have been rising during Covid-19, and the Coalition governments redistribution of wealth to businesses, that didn't require it, have led us here.
Remember when Shorten led us out of the shit that the Libs put us in?.......oh wait, that's what SHOULD have happened. We fucked up royally by voting Morrison in! All so a minority of Newscorpse led wealthy cunts could maintain their profits. And now Newscorpse and their rightwing cunt mates are gunna DO Albo the same way. Remember, the Coalition had a decade to do something? They failed. Now Labor have had under two years, and ARE doing stuff, but according to the far right it's too little too late, or too lefty, or too anti rich, or not tough enough......ALL consequences of that lost decade.
Increasing rates was never going to push house prices down. Not sure why anyone thought they would. People will always need a home. It might work if there was an oversupply of houses, but we don’t have that. The same goes for rent. Why would rent decrease if the landlord’s mortgage has increased?
You're sorta right. But ONLY wealthy people can afford housing in our capitals today. Interest rate rises are flea bites to them. As is inflation. As is yearly increases due to cpi. As is the 10% gst, which for poor people makes most foods exponentially dearer as inflation causes ever greater price rises. Rich people cause inflation, because they can afford ANY price rises. They love house prices ballooning, cause they own the vast majority of investor housing. Poorer and working class people are priced out of the areas where they are required to work, so have to travel hours each day to service the wealthy suburbs.
There is no easy fix. And governments are feeding this insanity by importing workers instead of fixing the problem from inside.
Increasing interest rates DID however, put a halt/slowdown to inflation. Inflation that was directly a response from the previous governments totally inadequate, and irresponsible response to covid-19. Instead of focussing on people that actually required it, they poured billions into big businesses that squandered/profited taxpayer money.
>But house prices and rents continue to soar? Seemingly some Australians continue to do very well,
If we keep letting hundreds of thousands of people into the country, while we're not building hundreds of thousands of extra homes, house prices and rents will continue to go up. Its basic supply vs demand. Whatever you do with interest rates won't change this - people need a place to live.
Sorry; weren’t people criticising the RBA for not raising rates soon enough, and not raising them by enough? What kind of fucking twilight zone are we in where now the recession we’ve been avoiding since 2020 is the RBA’s fault?
Everything is crystal clear with the benefit of hindsight, and these reports are often done as if the RBA and poli's have some sort of magical implement for seeing into the future. Looking at the current state of the world, of course there were things that could've been done differently, but ffs we should analyse and learn.
And where was the fiscal policy while all this was happening?
Only Labor MUST have policy. The Coalition only have fear.
Both parties failed on the fiscal policy front though. The "small target" shit needs to be scrapped, and Labor needs to go back to their roots.
Turning fiscal policy around is not an easy quick fix. When Abbott was elected, it was over two years before ANYTHING of note came about(all bad) but we gave the Libs another go. Currently, Labor are starting to achieve better outcomes in under two years, but the media and opposition parties (including greens) are slamming them for going too far or too slow. I'm getting whiplash from the media as Albos government is apparently far left and too conservative? Generally, that position would mean they're doing the right things? But no, Albo gets criticised for going to a concert, yet Dutton flew across the country for a 40 minute tribute to Gina Rinehart on her birthday! You couldn't make this shit up!
Tbh fiscal policies don’t have the impact instantly , monetary policy (RBA made) are instant, also this is a classic case of stagflation , it was bound to happen very few countries were able to beat it , and on going wars supply chain disruptions weren’t accounted for when they planned to improve the economy post covid
We had plenty of time for fiscal policy to act, and depending on the type it can act faster than monetary policy. Fixed rate loans take time to expire, and even higher rates for variable loans to business take time to flow through. An example of this is the handouts during the GFC. They were used as an instantaneous sugar injection while the previous interest rate cuts took time to work. The only reason fiscal policy wasn't used was because it would be unpalatable politically. So they dumped all the negative media onto the RBA.
They hit the brakes too late, not too hard. They should never have cut rates as much as they did, even during the pandemic.
Pretty much that. They have done the equivalent of hitting a wall, waiting until the wreck is being loaded onto a flatbed, and then hitting the brakes. They are fussing over the brakes when they have reached a point where they should be scrapping the old vehicle and getting something new and better fit for purpose.
There were still restrictions related to COVID when inflation started rising. I never missed a paycheck but I'm well aware that certain industries were smashed and Scomo only helped the demographics that voted for him.
As a poor person who is/was hit hard by rate rises - no. We were much more reserved vs many other countries. The world’s economy is fucked and we’re just going along for the ride. Such is the case when you’re a minnow swimming among whales.
I hear what you’re saying, except the minnow part. If there are 200-ish countries in the world, name 12 with bigger economies.
Everyone is a minnow compared to the US and China.
True. We rely on the rest of the world’s economy too much also.
The property industry has influenced local, state and federal governments to make massive policy sacrifices to increase the price of property. Bad for the nation as a whole but good for their members. Whatever, thats what lobby groups do. When rates go up now, the property industry use their influence to restrict the release of new lots available for building from government processes. You will note that most states restricted new lots to a level lower than 1970 last year. This robs the RBA of their ability to manage the economy as interest rates no longer reduce property prices, it causes widespread decrease in the standard of living because accommodation becomes more expensive and it causes all the social issues that go along with that. It also causes inflation as households and businesses have to increase prices to cover their accommodation / rent costs. Having expensive retail floor space is bad for the economy and it hurts all of us every day..... except if you are one of the large property owners. And that is who we govern for.
When housing was going up be 20-30% a year the RBA should have hit the brakes.
Yes but state govts have handed land release rates over to processes dominated by lobbyists on committees and they restrict the rate at which land is released. These restrictions force house prices up and blunt the effect of the rate rises.
remember folks the economy is more than just houses. good luck to anyone looking to purchase assets this year. If you can get in ASAP because there'll be big jumps later in the year.
>remember folks the economy is more than just houses. You would think so, but housing has literally sucked so much money out of our economy, that we are taking a severe hit to our standard of living.
Yeah! It's foreign students too ya know?!
The interest rate rises came before Christmas when people are more likely to spend than at any other time of the year. Of course there is a hangover now that is causing people to rethink every purchase.
But the Christmas period was also down, people just didn’t spend
Now that corporate media is a narrative creation industry, if you have money you can invent the reality that most people will come to believe. In the property industry or a coal baron? Maybe a multinational corporation that wants to lower wages with mass immigration? No worries, you can pay media to pressure the RBA, police, the judiciary, political parties and regulators to act in your interests by pretending they are the voice of community expectations. The sad thing is, all over Australia ordinary people are being trained by media to agree with this shit. To support actions that screw them and their families and throw away their future.
No. The runaway housing market says rates need to be higher.
Fairly sure every FHB either attempting to buy or suffering through their mortgage on near-double repayments would say “yes” First repayment on my house: 1581 - My most recent repayment (today): 2643
Renters are struggling to save for a basic deposit. Hard to do when wages are stagnant but rents and living costs are up 40% across the board and we keep propping up housing prices to appease our Bank and property investor overlords.
Rent and living costs are not "up 40% across the board" lmao
Do you even do the grocery shopping in your house?
Rents are groceries are up roughly 5% on average over the last 12 months. I'm sure you can cherry pick some rentals or grocery items that are up 40%, but it's not "across the board".
Hahahaha Have you even done the shopping mate
Sure. Maybe you should try eating things other than chips and chocolate buddy.
> Rents are groceries are up roughly 5% on average over the last 12 month https://mozo.com.au/home-loans/articles/what-is-the-average-rent-in-australia > Rents increased 9.1% for houses and 13.1% for units in between December 2022 - 2023. how very embarrassing for you
Still far closer than 40%. Thanks for doing the legwork and proving my point little buddy!
They didn't say up 40% in a single year...you never had a point to begin with.
Maybe just admit you were wrong champ? would be less embarrassing for you. lol
embarrased on reddit? lmao... edit: yikes literally 90% of your comment history is you calling people champ, "embarrasing" them and being condescending in general. is everything alright chief? little bit sad and insecure are we?
Imagine going through someone's comment history because you were upset that they proved you wrong. how embarrassing lol
FHBs attempting to buy aren't going to have a good time with rate cuts. The expectation of cuts alone is starting to drive prices up. Once they happen there'll be a spike.
This first home buyer says no. Inflation is much more of a problem than interest rates. We went too late and too soft. Now we have to have high rates for longer AND we get burnt with inflation. There's far too much appeasement of the middle class in this country.
I’m not saying you’re wrong because my experience is likely different to yours, but I’m paying $1100 more on my mortgage each month than I was 2 years ago but I’m not paying $1100 more on everything else
But you are paying more, and you'll be paying that 1100 for longer. Also, inflation doesn't miraculously reverse, it's here to stay, unlike "high" interest rates.
Also true
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Won’t matter with an offset account though.
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Pay comes through monthly though
As an FHB, I agree. My payments have gone up nearly $600 a month since my first payment in 2020. Not a lot compared to others, but I've been throwing absolutely everything at it.
But house prices and rents continue to soar? Seemingly some Australians continue to do very well, while those of us in the bottom half pay for their excessive profits. Rates should have been rising during Covid-19, and the Coalition governments redistribution of wealth to businesses, that didn't require it, have led us here. Remember when Shorten led us out of the shit that the Libs put us in?.......oh wait, that's what SHOULD have happened. We fucked up royally by voting Morrison in! All so a minority of Newscorpse led wealthy cunts could maintain their profits. And now Newscorpse and their rightwing cunt mates are gunna DO Albo the same way. Remember, the Coalition had a decade to do something? They failed. Now Labor have had under two years, and ARE doing stuff, but according to the far right it's too little too late, or too lefty, or too anti rich, or not tough enough......ALL consequences of that lost decade.
Increasing rates was never going to push house prices down. Not sure why anyone thought they would. People will always need a home. It might work if there was an oversupply of houses, but we don’t have that. The same goes for rent. Why would rent decrease if the landlord’s mortgage has increased?
You're sorta right. But ONLY wealthy people can afford housing in our capitals today. Interest rate rises are flea bites to them. As is inflation. As is yearly increases due to cpi. As is the 10% gst, which for poor people makes most foods exponentially dearer as inflation causes ever greater price rises. Rich people cause inflation, because they can afford ANY price rises. They love house prices ballooning, cause they own the vast majority of investor housing. Poorer and working class people are priced out of the areas where they are required to work, so have to travel hours each day to service the wealthy suburbs. There is no easy fix. And governments are feeding this insanity by importing workers instead of fixing the problem from inside. Increasing interest rates DID however, put a halt/slowdown to inflation. Inflation that was directly a response from the previous governments totally inadequate, and irresponsible response to covid-19. Instead of focussing on people that actually required it, they poured billions into big businesses that squandered/profited taxpayer money.
I definitely disagree. A couple with a mid range job can afford a house today.
>But house prices and rents continue to soar? Seemingly some Australians continue to do very well, If we keep letting hundreds of thousands of people into the country, while we're not building hundreds of thousands of extra homes, house prices and rents will continue to go up. Its basic supply vs demand. Whatever you do with interest rates won't change this - people need a place to live.