05-23-2022, 11:48 AM
(05-23-2022, 11:14 AM)ElwoodBlues1 link Wrote:Wages growth means higher inflation which means higher interest rates, that is the reality. Inflation is 8.5% in the USA which will flow on down here, we won't be as bad but any wages growth will be gobbled up.
Banks have to play ball as well which is doubtful imho, some are offering 2.9 % on term deposits already so mortgage rates are going up. Going to be a lot of defaults and houses for sale by years end...
Not according to a raft of economists speaking in the lead up to the election EB.
Wages growth linked to productivity isn’t inflationary. The challenge for the new government will be to develop the framework for that to happen. The first step would be to seek advice from beyond Treasury … but I’m not sure they’re that courageous/innovative. ?
“Why don’t you knock it off with them negative waves? Why don’t you dig how beautiful it is out here? Why don’t you say something righteous and hopeful for a change?” Oddball