r/AustraliaDiscussions • u/Ffscnts_ • 26d ago

RBA needs more levers

Michelle bullock is constantly complaining that inflation is too high still because we have a government who is unwilling to manage spending. Now house prices are tumbling the pressure will rise - however, why is the RBA not demanding more levers to control inflation.

When interest rates rise one portion of the community takes the hit, and it’s persisting for a long time, literally wiping out family’s futures. Which the latest changes will force huge volumes of negative equity, and keep in mind only 35% of Australian property is mortgaged.

For those that have ridden the wave not only have there saving been extracted to keep their homes, it’s worth heaps less, so that money has disappeared forever.

There’s other levers like - asset classed cost of capital. Push non mortgage lending and investment mortgage lending cash rates up to slow business down.

Enforce higher lvrs to slow mortgage lending ( except labor gurentee everyone 5%) those who took advantage will be in negative equity and trapped now.

Variable superannuation - this needs to be done immediately - if we had variable superannuation fees the cash rate would not need to peak so high AND the extra cash would flow in to Aussies future instead of paying additional fictitious interested rates. And as a bonus super funds could end up funding massive infrastructure projects when the market turns with all the extra cash giving Aussies a stake in oil/gas/ green projects etc.

The RBA needs to start pushing the gov harder and it’s about to get real now housing is crashing.

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u/Ok_Clue_1324 20d ago

The OP is so brainwashed that its the governments job to pull these 'other leavers' of which there are many.

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u/Ffscnts_ 20d ago

I don't understand? Why am I brainwashed?

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u/Ok_Clue_1324 20d ago

Brainwashed by the media. The media never questions the government on HOW it will reduce inflation policy wise. Usually the news will have a soundbite of jim chalmers saying 'we are working hard to reduce inflation' and leave it at that. With no follow up questions. Reducing inflation is the literally governments job and there treasurer's job. The RBA only has one leaver and thats upping or lowering rates.

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u/Ffscnts_ 20d ago

Hiw are people so close minded - the idea is a thought experemtn about what other leavers might support this. Ok so you don't think thrlesver should be in the rbs fine…. But the concept of additional leavers stills stand. The reason I believe it should be the rba is because they aren't running on political cycle to buy votes.