More than forecasted.
View attachment 15641
I've posted my thoughts on this in the past, but look at the reasoning behind the RBA decision.
WTF are rising interest rates going to do, to rein in spending on electricity / gas and petrol. Seriously. If anything, as we enter winter spending on particularly gas is going to increase significantly (they will seasonably adjust, but with gas rates being significantly higher than they were this time last year. Also, with more people being pushed to get back to the office, how will increasing interest rates affect petrol prices downwards. If anything demand will increase for both of these areas, and with the supply chain driving the base prices higher, interest rate increases will do absolutely NOTHING to rein in spending in these areas.
All it will do, is ensure there is less money supply around, higher proportions of disposable income will go towards electricity / gas and petrol and less money will be spent elsewhere in the economy. They go on to say:
Whilst 3.3% growth is ok, remember the time period that this was over, covid affected years.
A 0.5% increase is a large increase, and with the macro economic environment, my view is this is a dangerous time to take such an aggressive step. It was clear there were some itchy fingers to increase rates, I'd have thought a softer approach may have been the more prudent move.
Time will tell I suppose.
www.abc.net.au
