A lack of data on how consumers are responding to monetary policy could lead the Reserve Bank to raise rates into a recession. And what if that's difficult to escape? It's a critical economic question right now, writes David Taylor.
I bought two years ago (first home) and have certainly been doing spittakes every time I hear rates are rising again. We planned for a lot of headroom so it’s not the end of the world, but the backflip of the RBA after doing nothing for so long under the Coalition was pretty irritating.
But ultimately they have a very blunt hammer to fix things, it’s really the government that should be stepping in. But of course nobody wants to commit political suicide.
I definitely noticed more posts about mortgage stress on r/AusFinance the last few weeks though.
I don’t know what the structural fix is but, do they simply step in and say variable mortgage rates are now an unfair term in the loan contract and require a min 2 year fixed rate or something? Just workshopping this really, I can already imagine some unintended consequences
I bought two years ago (first home) and have certainly been doing spittakes every time I hear rates are rising again. We planned for a lot of headroom so it’s not the end of the world, but the backflip of the RBA after doing nothing for so long under the Coalition was pretty irritating.
But ultimately they have a very blunt hammer to fix things, it’s really the government that should be stepping in. But of course nobody wants to commit political suicide.
I definitely noticed more posts about mortgage stress on r/AusFinance the last few weeks though.
I don’t know what the structural fix is but, do they simply step in and say variable mortgage rates are now an unfair term in the loan contract and require a min 2 year fixed rate or something? Just workshopping this really, I can already imagine some unintended consequences