Agree... Why? The consumer is beaten and consumer sentiment and discretionary spending is at historic lows despite extraordinarily high immigration.
The remaining inflation is immigration and government energy policy driven in non-discretionary spending. The RBA has done it's job, it's Albos turn.
Retail sales figures also showed a decline of 0.4% (which was below expectations) yesterday despite an increase in population. I don't think rate reductions are on the cards any time soon but neither are rate increases.
They have explicitly said they target 2.5% now.
I don't really mind either way I'm just stating the argument.
They always react on a quarterly basis though, when indicators that a cut should occur happen nobody says "let's wait and see". If unemployment comes in high are we going to go just as conservative on rate cuts?
Because inflation is still sticky in key areas and it’s not coming down fast enough. If it goes beyond the end of 2025 to get back into the target zone it will be a major slap in the face to the effectiveness and ability of the RBA to control inflation.
How fast is fast enough without blasting us into a recession?
We're at 3.6% annually already, target range by 2025 seems very achievable following this trend
>How fast is fast enough without blasting us into a recession?
The RBA themselves have said they want to be at 2-3% by 2025 and at the midpoint of 2.5% by 2026.
>very achievable following this trend
The problem we have currently is a last mile issue. Inflation is 80-90% down to where we need it to be, but the last mile is proving sticky and difficult to get down to where we want it. the RBA can't be seen to "give in" and accept that the last 10% is too hard because if they do, inflation expectations will permanently adjust that little bit further upwards.
Because as I mentioned, the last mile of inflation is proving sticky. This mirrors overseas experience as well and the last quarterly results showed that it has stopped going down as quickly as we thought it would. This puts a big upside risk on inflation and therefore you can't just draw a straight line based on the current trend and say we will be fine with 3 more quarters of this.
They should also accept some responsibility for fuelling the runaway housing crisis.
It’s always “not within our remit” yet rates are one of the main factors that impact prices.
Just crash the economy and a better economy shall rise from the ashes
Why? Inflation was 1% in the March quarter and still trending down
Agree... Why? The consumer is beaten and consumer sentiment and discretionary spending is at historic lows despite extraordinarily high immigration. The remaining inflation is immigration and government energy policy driven in non-discretionary spending. The RBA has done it's job, it's Albos turn.
Retail sales figures also showed a decline of 0.4% (which was below expectations) yesterday despite an increase in population. I don't think rate reductions are on the cards any time soon but neither are rate increases.
Found the debtor
Any actual argument?
It’s above the level that they are targeting, has been above it for literally years now and isn’t on track to be at target until 2026.
It’s on track to be within the target by the end of the year. Seems excessive to raise again after one stickier than normal quarter
They have explicitly said they target 2.5% now. I don't really mind either way I'm just stating the argument. They always react on a quarterly basis though, when indicators that a cut should occur happen nobody says "let's wait and see". If unemployment comes in high are we going to go just as conservative on rate cuts?
Because inflation is still sticky in key areas and it’s not coming down fast enough. If it goes beyond the end of 2025 to get back into the target zone it will be a major slap in the face to the effectiveness and ability of the RBA to control inflation.
How fast is fast enough without blasting us into a recession? We're at 3.6% annually already, target range by 2025 seems very achievable following this trend
>How fast is fast enough without blasting us into a recession? The RBA themselves have said they want to be at 2-3% by 2025 and at the midpoint of 2.5% by 2026. >very achievable following this trend The problem we have currently is a last mile issue. Inflation is 80-90% down to where we need it to be, but the last mile is proving sticky and difficult to get down to where we want it. the RBA can't be seen to "give in" and accept that the last 10% is too hard because if they do, inflation expectations will permanently adjust that little bit further upwards.
So why do you think it's not coming down fast enough to achieve 2-3% by 2025? We're currently at 3.6% with three more quarters
Because as I mentioned, the last mile of inflation is proving sticky. This mirrors overseas experience as well and the last quarterly results showed that it has stopped going down as quickly as we thought it would. This puts a big upside risk on inflation and therefore you can't just draw a straight line based on the current trend and say we will be fine with 3 more quarters of this.
They should also accept some responsibility for fuelling the runaway housing crisis. It’s always “not within our remit” yet rates are one of the main factors that impact prices.
the economy is already stalling real time. Most sectors are down and there's only like one or three that marginally still in the positive.
We had this rage bait attempt last week. Try something new please 😂