Financial Realities Hit Home After The RBA Rate Hike!

On Tuesday the RBA lifted the cash rate to a stonking 4.35%, in the third move in three decisions. Those following this channel would have not been surprised, as I have been signalling this for some time. This despite the pressures that many households are under as costs rise, inflation bites and real incomes track south. There were a few economists who came out with the view that this was a mistake. But this is really missing the main points, so with the help of the recently released statement on monetary policy which contains the assumptions behind the RBA’s decision, […]