WENDELL HUSSEY | Cadet | CONTACT
Some of the bright minds in charge of managing our economy are set to meet today to discuss what to do with interest rates.
Many in the know believe that the Reserve Bank of Australia may keep the cash rate on hold this afternoon, but more hikes are inevitable in the short term.
The impending hikes will of course also put an incredible squeeze on ordinary people, namely anyone who doesn’t own their own home outright or is renting.
The lifting of rates, according to the bank, government and mainstream economists is that it will control ‘inflation’ and stop our economy spiralling out of control.
So far, through heavy and consecutive interest rate hikes, the masses have largely reined in their spending in order to bare the burden of helping with controlling inflation.
That hasn’t been the case with massive corporation lifting their profit margins, or the global economy heeding the words of Australia’s Reserve Bank.
However, this time around it’s believed that the interest rate hikes will put enough pressure on workers to curb the inflation caused by corporate profiteering, global market influences and a hyper inflated housing bubble.
“If we can push enough people over the mortgage cliff, then we should be able to get a handle on the rising cost of pretty much everything,” said Reserve Bank Governor Michele Bullock, who has the unenviable task of only being able to influence the economy by pulling the lever of interest rates.
“By forcing people to spend 50-80% of their income on servicing a roof over their heads, we should be able to rein in the corporate profiteering that is significantly fuelling inflation.”
“And on top of that global influences on things like the cost of oil and energy should probably start trending back towards the good stuff.”
“I mean, the government refuses to do anything about the cartel like behaviour of Australia’s supermarkets, banks or energy providers, so all we can do is push interest rates up and hope that inflation goes down.”
“Not sure what else we are supposed to do.”
More to come.
