I'm just wondering what my bank factored in when I took our mortgage out. Do they assume I'll get a CPI increase each year?
That would be WAY off the mark if they did.
The thing I don't get about inflation tgn01 is, when the cost of goods & services go up (petrol, electricity etc) inflation rises. To combat rising inflation, interest rates go up.
If wages aren't rising but inflation is, what happens then?
I guess that's why they have underlying inflation which strips out volatile CPI movers. The government is to blame for a few of those (tobacco excise, twice yearly grog tax grab etc)
Interesting times but I don't think rates can move for a while.
