Homeowners/buyers are feeling the pinch...its not just interest rates causing problems..higher food costs, and higher petrol costs. Filled up the other night $90, thats just my car. Thats a big whack out of someones wages.Especially if they are travelling far to work. Add a rate increase/rent increase..then food up...no wonder people are feeling a bit wary...which will cause the opposite to what is needed.. people tighten their belts, pay loans quicker, save money...that sounds ok, except the money is taken from the economy...that has a negative effect on the economy, as over time business slow down, staff have educed hrs etc..so a self fulfiling prophecy..let the rba reduce rates and stimulate our economy...we are heading for a recesssion the way things are going...
