We have seen a raft of comments and discussions from the governor of the Reserve Bank of Australia. The message has been disjointed. What has come through, whether he realises it or not, is the fundamental disconnect between government policy and central bank policy. On one hand, Australia is being flooded with record levels of new immigrants, putting upward pressure on rents and services. Supply in that area is not elastic. New houses and infrastructure take years to build.
If we are relying on rising interest rates to crush demand so that “we need more people to live in each dwelling”, then we need a recession.
In this week’s investment podcast, Nucleus Wealth Chief Investment Officer, Damien Klassen, Chief Economist, Leith van Onselen and Senior Financial Adviser, Samuel Kerr delve deeply into the matter at hand.
Can’t make it to the live series? Catch up on the content via Podcasts or our recorded Videos.
Samuel Kerr is a Senior Financial Adviser at the MacroBusiness Fund, which is powered by Nucleus Wealth.
The information on this blog contains general information and does not take into account your personal objectives, financial situation or needs. Past performance is not an indication of future performance. Samuel Kerr is an Authorised Representative of Nucleus Advice Pty Limited, Australian Financial Services Licensee 515796. And Nucleus Wealth is a Corporate Authorised Representative of Nucleus Advice Pty Ltd.