RBA Raises Rates Again Despite Slowing Inflation and Falling Household Incomes
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RBA raised rates despite annual inflation falling from 6.0% to 5.4% in September. RBA focused on 1 quarter increase rather than overall decline.
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RBA has raised rates 300 basis points more in past 19 months than 2006-07 period despite slower economic growth now.
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Household incomes were rising in 2006-07 but are falling now, yet RBA wants to weaken consumption more.
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Rate rises hurt lower income households but benefit higher income ones with savings and rising house prices.
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Government can amend stage 3 tax cuts to avoid fuelling inflation unlike Howard government's cuts in 2006-07.