Quote:
Originally Posted by Slava
Well it's tricky though, because the rate hikes have also increased shelter costs, which is a factor in that inflation print. I think that is ~0.5 of that figure.
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Yes it seems they are a bit stuck. If they raise interest rates further, monthly payments on housing costs which are already contributing to the problem increases the inflation numbers even more.
Too many people on variable rate mortgages and the regular expiry of people on fixed term mortgages that have to get a new one at a much higher rate (due to interest rate hikes) its a vicious circle not solvable by just the interest rate hike hammer.