- Reserve Bank boss says we need more people sharing the same dwellings.
- Rental costs are expected to spike further.
- The RBA has tipped inflation to come down to 3 per cent by 2025.
“So high rents equals higher inflation, equals higher interest rates, equals higher rents. There’s a hole in the bucket, isn’t there, dear Dr Lowe,” he said.
Greens senator Nick McKim said inflation was creating a “vicious cycle” for renters. Source: SBS News
Mr Lowe rejected Senator McKim’s suggestion that lowering interest rates would break the cycle, implying it would stoke inflation in other ways.
The Greens insist that does not go far enough and are demanding $5 billion every year for public housing.
Positive signs on inflation: Philip Lowe
“I don’t think the budget is adding to inflation. It is reducing inflation by the next financial year.”