The Reserve Bank of Australia has been raising rates in Australia. While arguing that inflation is being pushed by supply disruption and capacity constraints the Bank recognises there is not much they can do about these factors.
But that they can try to slow demand.
It looks like they are impacting.
Via ANZ here in Australia:
- Australia's spending slowdown has begun.
- Total ANZ-observed spending from 20 Nov – 18 Dec was just 10% higher than in 2019, despite a CPI increase of 10.5% between Dec 2019 and Sep 2022 and population growth of 1.8% from Dec 2019 to Jun 2022.
ANZ graphic:
If you are looking for a pause in RBA rate hikes, here is some fodder for your argument.
I am not. I think the current high level of inflation, along with what we have been hearing out of the RBA on their view of the need for even tighter policy, means we'll get a cash rate hike at the next meeting, on February 7.
