The ABS reported that CPI increased by 0.8% over the June quarter for an annual increase of 3.8% – the highest annual growth rate since March 2008.
Petrol prices, supply chain disruptions and the withdrawal of coronavirus supports caused inflation to spike, but the lift will be transitory and unlikely to shift the Reserve Bank’s outlook for interest rates as inflation remains well below the RBA range of 2 – 3% last achieved in December 2015.
Source: Dr. Andrew Wilson, My housing Market; ABS
Despite media speculation, interest rates are unlikely to rise until 2024, particularly in light of the lengthy Sydney Covid lockdowns which could push interest rate rises even further into the future.
from Property UpdateProperty Update https://propertyupdate.com.au/what-does-rising-inflation-mean-for-interest-rates/
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