Multiple rate hikes needed to combat inflation, says Warren Hogan | The Business | ABC NEWS

People are forgeting four major factors which are ignored always when you heard so called experts speak.<br>First during COVID nearly 20 billion australian dollars were printed with out control all this money now in circulation .Second during Howard years in power not one cent was invested in anything related to new business opportunities and even during 2008 financial crisis Rudd&#39;s goverment choose to concentrate on schemes for social infrastructure ,but not housing .<br>Third since 2000 Australia lost the energy indipendance the reason are simple cheap overseas supply and federal goverments allowing companies to import recourses outside the country with out covering first domestic needs as now with both Iran and Ukrainian war is obvious that energy supply is must for every country.<br>Fourth most investors complain now loosing on negative gearing and capital gain tax by the numbers if the previous rules are kept it was gone cost the taxp payer nearly 20 billion dollars per year by 2030 /millitary budget is 53 bilion now and social spending is 309 billion / not sustainable by any immagination .<br>Australia is slowy turning into US ,high private health cost,educational and credit card debts and social system which is struggling to cover up basic needs .People were sold the idea of homeownership when medium house in some places selling prices is nearly one million which anyone with brain will not even try to put himself in so much debt knowing that even little as 1% increase in interest will cost him a lot of his wages .Not to mention that world is chaning and new technology will eat and spew a lot of people out with some proffesions dissapearing all together .The role of goverment was to prepare for this and create new opportunities for small and individual business instead Australia choose to concentrate most of availbe funds on housing similiar to US before 2008.

A cash rate of 7.25% is not plausible in 2026 , things were different before the gfc . If they increase it another 2 or 3 times , unemployment will soar past 6 % by April next year . So unless the RBA wants a 10 to 12 % unemployment , it will be around 4.85 to 5.10%

We need a more surgical and effective tool than just bludgeoning homeowners over and over again. It puts all the pressure on the group which has little budget leeway left. We aren’t the ones throwing money away on discretionary luxuries, and forcing more families into mortgage default doesn’t help anyone.