On May 5, ANZ CEO Shane Elliott said the RBA was forced to take action in raising interest rates as the country’s economy remained strong.
Unfortunately, Elliott said, the way to solve the problem is to create a little pain, create a little fear. This is to prevent people from spending, so the economy will slow down.
While that sounds harsh, the Fed needs to keep raising rates.
Counterintuitively, homeowners seem to be doing just fine, but those who rent or have less secure employment are the ones suffering.
They are currently bearing the brunt of changes in the cost of living, so this was an unexpected result.