Kolher: Hike rates and consumers will enter death spiral

Monday, 25 September 2017

From Alan Kolher today:

Reserve Bank governor Philip Lowe and his board are approaching the biggest decision since the RBA gained full independence in 1996 and started making its own decisions.

…why is that such a big deal this time? Because household debt is 190 per cent of income and we’re in the midst of an energy shock.

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About the author

David Llewellyn-Smith is Chief Strategist at the MB Fund and MB Super. David is the founding publisher and editor of MacroBusiness and was the founding publisher and global economy editor of The Diplomat, the Asia Pacific’s leading geo-politics and economics portal. He is also a former gold trader and economic commentator at The Sydney Morning Herald, The Age, the ABC and Business Spectator. He is the co-author of The Great Crash of 2008 with Ross Garnaut and was the editor of the second Garnaut Climate Change Review.