this post was submitted on 06 Aug 2024
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The RBA says don’t expect interest rate cuts for 6 months. Here’s why it could be sooner. (theconversation.com)
submitted 3 months ago by ModerateImprovement@sh.itjust.works to c/australia@aussie.zone
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[–] dgriffith@aussie.zone 8 points 3 months ago* (last edited 3 months ago)

There's a lot of blame to go around here:

  • A string of governments going back 30+ years cooking the housing market via investment opportunities/tax breaks.
  • Rental market being an absolute shitshow due to the above.
  • Some dickhead at the RBA, the group that sets cash interest rates, saying in 2021 that interest rate rises weren't going to happen for a fair while and then 6 months later ratcheting up the rates.
  • People taking 2.05 percent variable rate loans during that time for the maximum they can when a simple chart of mortgage interest rates over the last 40 years would suggest that budgeting for a 6-10 percent mortgage would be a good idea.
  • Banks, mortgage brokers, etc, all pushing for - and allowing - people to get the biggest mortgage they can handle right now.
  • The warped Australian dream of getting the biggest house you can and living the best life you can with the best cars and toys, pushed by advertising from corporations.
  • And then we get to quasi-monopolistic companies that get between the consumer and basic goods and services, cranking up the margins to provide maximum return to investors. That's Coles/Woolies/banks/telcos/power companies/Ampol/Caltex/etc.

The whole thing is a pressure cooker designed to get as much as possible out of the general public.