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well said Scott. Unfortunately Collin doesn’t seem to understand...

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Cowboyinvestor

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27/01/22

15:09

Post #: 59164691
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Originally posted by Scott th Ratbag: ↑

the RBA have targeted core inflation to be "sustainably" within the range of 2.5-3.5% before they raise baseline interest rates.

the inflation we are looking at is largely due a) to massively increased cost of oil, and b) covid-related worker shortages making labour intensive industries struggle and food delivery businesses having to pay higher costs of logistics..... these b) costs are temporary and will resolve as the epidemic eases. the former a) issue is also likely to be temporary.

this means the inflation figure, small as it is here in Aus, is not "sustainable", its not due to core aspects of inflation such as wage rises, which is what the RBA are looking for.

so you want interest rates higher? Why for goodness sake? the mortgage stress alone should be enough to give the RBA and Govt significant caution with interest rate rises.

the RBA was forced by Frydenberg in 2019 to say that the "economy is strong", so yes the Fed Govt has some power over the RBA that should not be there. RBA are supposed to be fully independent and not under pressure to conform with any Govt demands.

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well said Scott. Unfortunately Collin doesn’t seem to understand what you have summarised. Nor does he seem to understand the long term stability forecast for the Australian Economy.
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