#82923
Strata Ken
Flatchatter

    What is going to happen is that as we get inflation under control there will be less demand in the system. People will have less money, so they will do less of living on their own in 2 bedroom units. Philip Lowe, former RBA governor, actually pointed that out and nobody liked it. The RBA is now in the position where they have to do something to offset government spending, so inflation remains in target, because otherwise everyone is going to start believing that our inflation rate is constrained to 3-4%. The outcome of that is that interest rates on bonds would rise.