This just cannot be allowed to go on. The absurdity of a central bank declaring it will do nothing until 2024, while an international body, the OECD, urges a major review into the organisation. The economy is expected to be reasonably strong. Inflation is accelerating and other central banks are already raising rates. Including the RBNZ.
In Australia, rates are at all time emergency crisis settings, clearly feeding house price gains at risk of creating a bubble.
Forecast: RBA Cash Rate to rise to 0.5% in 2022. Risk 1.00%.
The Reserve Bank of Australia itself, does not expect to be doing so, but so extreme are its mis-steps becoming, that it will be forced to review and adjust its rates outlook accordingly. It is one thing to try to be popular by generating artificially low rates to fuel stock and property market speculation, and entirely another to act as a responsible central bank that will not allow inflation and potential asset bubbles to get out of hand.
There is simply no justification for having rates at all time crisis levels until 2024, when NSW and Victoria are opening up now, good growth is expected, but inflation is accelerating as part of a global phenomenon which even the US Federal Reserve is starting to admit is not at all transitory, and housing prices are skyrocketing at an historic pace.
RBA cash rate to rise to 0.5% in 2022, risk 1.00%
10 year bond yield to rise to 2.5% in 2022 and 3.5% in 2023
Australian GDP has remained firm
Consumer Price Index is accelerating dangerously
Housing prices are rising faster than ever
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