RBA interest rates have so far delivered roughly $500 per month in relief to the average mortgage.
This is great, but it is not going to move the consumer needle. Why?
Two words for you. Gas cartel.
The average household pays $3,000 in utility bills, and they are about to rise by about 40%.
That’s $1200 in money out the door by year-end for all households when the RBA rate cuts only impact 45% of them. Many of the others will be hit by lower yields as well.
Amusingly, this bill shock will comprise the majority of inflation as well, ensuring the rate relief cannot arrive.
In macro, there is mismanagement sometimes, which is called “policy error.”
Then there is catastrophic political corruption that shifts money from the citizenry to a vicious Chinese cartel.
That’s called Jim Chalmers, who failed to fix gas when it was needed during the Ukraine War.
