Could Australian Interest Rates Hit 5.6%? #shorts #australia #inflation #economy

By Scott Kuru

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Australian households are getting squeezed from BOTH directions. Inflation keeps everyday costs high, while higher interest rates make mortgages and borrowing more expensive. And that’s what makes the current situation so frustrating. The RBA can use interest rates to try to slow demand, but monetary policy doesn’t operate in isolation. Government spending, productivity, housing supply, energy costs and broader economic conditions all matter too. If those forces keep working against each other, households can end up carrying the burden. That’s why the debate shouldn’t just be about whether the RBA raises or cuts rates next. We should also be asking what’s actually driving inflation and whether every part of government is working towards bringing it under control. Because Australians are already feeling enough pressure at current rates. Who do you think carries more responsibility for getting inflation under control, the RBA or the government? Let me know in the comments. 👉

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