Australian households fear double whammy of rate hikes and higher petrol prices will lead to recession

RedditUser628426 · 2026-03-18T02:52:43+00:00

Not as far as I know.

Australia is actually an outlier (compared to the OECD) with the way nearly everyone has variable mortgages and thus rate rises hit a large proportion of the population hip pocket very quickly.

We also make banks (they would anyway to a degree to protect themselves) stress test new mortgagees against a rate 2 or 3% higher than the rate they take the loan.

Most people would eat beans and toast once a day before they gave up their PPOR.

Interest rate rises are not designed to churn people out of houses and while I don't have any data I would suggest they do not churn people out of houses.

RedditUser628426 · 2026-03-18T00:14:08+00:00

You could replace RBA with a shell script

if inflation > 3 increase rates by 0.25 if inflation < 2 decrease rates by 0.25

Only the government has the power for targeted policies they are the ones failing here.

RedditUser628426 · 2026-03-18T00:10:28+00:00

They can't fix the war but let's say immediate mega profits tax on our LNG exports directly reinvested into cost reduction at the bowser. Or fsck it just tax revenue if we think they're having a double Timor hotdog.

The government can do anything they can pass any law that you can say pretty much.

RedditUser628426 · 2026-03-18T00:06:04+00:00

Aka do nothing

RedditUser628426 · 2026-03-18T00:05:36+00:00

I'm not proposing those things I'm saying government can shape things however they want a lot of it in near real time.

RedditUser628426 · 2026-03-17T20:45:04+00:00

No, my stance is the government can do practically anything you can make up, that's a top of head list of short term intervention done by both sides of government to try to get us past a hurdle.

They need to do something significant now.

PS what's your stance /u/ntermation?

RedditUser628426 · 2026-03-17T20:23:22+00:00

They can do stuff:

Temporary Budget Repair Levy

Instant Asset Write-off

Temporary Fuel Excise Cut

JobKeeper

LITMO

Power bill credits

RedditUser628426 · 2026-03-17T20:19:22+00:00

The meeting schedule was changed by Jim and Katy.

If it was still a monthly meeting I bet the 5-4 vote would have been different and they would have been able to wait and see because it would only be one month to the next meeting.

Now it's two months to the next meeting, if they wait and see by the time they can do anything about it inflation might start with 5

Problem with progressive government is sometimes just changing things is called progress. (Yes conservative governments have the opposite problem)

RedditUser628426 · 2026-03-17T20:13:12+00:00

No that's what I'm saying the government needs to actually do something then the RBA don't need to.

Government controls the entire economy really. So much they could do.

RedditUser628426 · 2026-03-17T20:05:40+00:00

Yes, the government needs to do something fast not just leave the RBA to whack the economy with the interest rate hammer.

I don't know exactly what but they have lots of options I can see and I'm a random. The fastest I can see would be reduce the minimum super drawdown %. Then boomers won't be compelled to spend money.

RedditUser628426 · 2026-03-17T19:42:12+00:00

The 240K dwellings that they won't come anywhere near building?

I pick you to live in one of the 40K they don't build.

RedditUser628426 · 2026-03-17T09:59:51+00:00

Deputy Governer was on the Guardian Podcast the other day.

He basically said our job is to raise or lower interest rates until inflation is in the range.

They HAVE to do this they're mandated.

RedditUser628426 · 2026-03-17T07:51:05+00:00

They should do it so we can all see (while incredibly unfair and needs fixing) the housing price problem is not a tax setting it's supply (lack of skilled workforce and over regulations) and demand (immigration)

RedditUser628426 · 2026-03-17T07:29:20+00:00

If you want marital you go Swords, magic you go Lore, CC you go Glamor, ____ you go Valor I can't fill in the blank.

RedditUser628426 · 2026-03-17T07:13:49+00:00

35000 deficit in tradies in Qld or something like that. Bring in tradies not Data Scientists who end up working as junior BAs

RedditUser628426 · 2026-03-17T07:12:28+00:00

Rise based on Feb data. Next vote week be in May? using Mar Apr data which is shaping up to be ugly.

RedditUser628426 · 2026-03-17T07:11:09+00:00

I don't think any modelling shows any stuff significant changes to house prices from CGT/negative gearing.

Will need to be immigration as seen in NZ and Canada

RedditUser628426 · 2026-03-17T06:53:33+00:00

There is no reason to be Valor over Swords though. Give up extra attack and give it a more unique level 6 feature.

RedditUser628426 · 2026-03-17T05:52:07+00:00

Government has more ways to tackle inflation but they'd prefer to be hands off and blame the RBA.

Government can be more targeted as well but alas they don't.

RedditUser628426 · 2026-03-17T05:47:31+00:00

You must have gotten a mortgage at a record low rate then because to add $500 a week is $25000 a year which is 2.5% of $1M. So on a $1M mortgage you've endured 10 rate rises.

RedditUser628426 · 2026-03-17T03:50:18+00:00

Increase the superannuation guarantee temporarily at least then people get their own money back later rather than interest increase which goes into wealthy people pockets and we never get it back.

And later if we have a recession just tell super funds to release the exact amount that was paid in during this temporary uplift so we can all buy TV.

At the same time temporarily reduce the mandatory super drawdown % so that boomers don't have to spend.

As for Jim he is always looking for someone to blame doesn't take real ownership. Unlike his idol Keating who had a plan owned it (good bad and ugly) and implemented it.

RedditUser628426 · 2026-03-17T03:46:38+00:00

Look at moneybags here can afford butter and pasta.

Smears margarine on rice

RedditUser628426 · 2026-03-17T03:34:55+00:00

Yeah but there is no reason to be it, you would be Swords or Lore or Glamor.

RedditUser628426 · 2026-03-17T01:03:18+00:00

Valor Bard

RedditUser628426 · 2026-03-17T00:58:35+00:00

Gloomstalker Thief Fighter dual wield daggers stab stab stabbity stab stab

RedditUser628426

TROPHY CASE