There is going to be contraction. (A couple of Lenders now only...

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.