It's getting scary out there., page-76

There is going to be contraction.

(A couple of Lenders now only doing construction loans IF you have 20% deposit due to the issue with fixed rate contracts.)

Look to disposable / discretionary income & where it is currently being spent.

That will be where the consumer pull back first & impact that industry, (strangely enough, Alcohol seems to hold its own in a down turn) .

If we are to get to 2.5 t0 3.0% (RBA rates) by end of year, we still have 2.5-0.85 = 1.65/.25 =6 to 7 rises..

So expect 0.25% per month going forward (unless we get the inflation genie back inthe bottle).....that will give the papers something to write about.............& suck out any disposable income.

RBA was slow on the inflation contol valve & playing catch up...& always overshoot....lucky we are so accomodating.