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{{propApi.successMessage}} {{region}} Change locationDangerous dichotomy facing Australia
Dangerous dichotomy facing Australia
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Many of the factors on the left are similar to – if not worse than – the conditions that prevailed before the pandemic, resulting in much lower inflation and interest rates than today. Remember in late 2019, before anyone had heard about COVID-19, the RBA’s cash rate was at just 0.75 per cent and inflation wasn’t even able to sustain 2 per cent.
And yet, inflation and interest rates are persisting at so much more elevated levels than before, because the factors on the left are being completely over-powered by the factors on the right.
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Dangerous dichotomy facing Australia
The RBA’s decision this week following the recent resurgence of inflation highlights the dangerous dichotomy of Australia’s economy: households and businesses vs government.
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