Ann: Quarterly Activities & Appendix 4C Cash Flow Report, page-9

Cost of living pressures and too high a % of income going to property and loan repayments will destroy demand and lead to job losses and bankruptcies in an ongoing vicious cycle. Two speed economy confuses the regulators and reserve banks.

For example > putting interest rates up helps those already spending as they have lots of cash ( boomers ) and only hurts further those with no cash but huge loans that had no excess to spend already - the young. So the stated reason for putting interest rates up is not achieved at all. What will be achieved is higher unemployment eventually and that may cause inflation to falter. The lead time is months though.

The break on unemployment going up is lots of boomers retiring thus creating jobs for the young that are already losing jobs so this cycle is taking longer than normal to play out. History rhymes rather than repeats.