The cash rate is going higher. It isn’t fear mongering to consider it reaching 5%+ - While it is unpleasant for debt holders to think about, the cash rate is almost certainly going up to at least 4.60% (based on current market pricing). Talking about it reaching 5%+ isn’t someone selling you doom.
Take a look at two fairly comparable countries:
Canada CR 4.75%, CPI 4.4%, unemployment rate 5.2%.
NZ CR 5.50%, CPI 6.7% unemployment rate 3.4%.
Meanwhile: Australia: CR 4.10%, CPI 6.8%, unemployment rate 3.6%
Canada has a higher unemployment rate, lower inflation and only recently hiked from 4.50 to 4.75%.
NZ has a slightly lower CPI and a better rate of unemployment with a cash rate that is 1.4% higher.
I am not here to argue about pain, hurt or fairness. I am posting facts for you to think about next time news.com.au tells you 'surely rates can’t go higher!' because they absolutely can.Ausfinance
The cash rate is going higher. It isn’t fear mongering to consider it reaching 5%+ - While it is unpleasant for debt holders to think about, the cash rate is almost certainly going up to at least 4.60% (based on current market pricing). Talking about it reaching 5%+ isn’t someone selling you doom.
Take a look at two fairly comparable countries: Canada CR 4.75%, CPI 4.4%, unemployment rate 5.2%.
Canada has a higher unemployment rate, lower inflation and only recently hiked from 4.50 to 4.75%.
NZ has a slightly lower CPI and a better rate of unemployment with a cash rate that is 1.4% higher.
I am not here to argue about pain, hurt or fairness. I am posting facts for you to think about next time news.com.au tells you 'surely rates can’t go higher!' because they absolutely can.
Buffet indicator is showing some wild times ahead perhaps, combine that with Berkshires record high cash hoard of 30%... chart via barchart.com / Longtermtrends
🔺 Student Loan Delinquencies Hit Record 12.9%... The spike in red reflects financial strain returning fast. Credit card delinquencies are rising too, hinting that lower-income consumers might be nearing a breaking point. What's going on...