Following the resumption of rate rises from the RBA earlier this week, many Australians have been left wondering how things went so badly wrong that the RBA has needed to raise rates only a year after it started cutting them, despite the prior rate rise cycle delivering the largest relative rise in mortgage rates in Australian history.
The Albanese government would love to blame the RBA for failing to manage inflation. But realistically, they could only have raised rates earlier.
The simple reality is that a combination of inflation and declining real wages has led to declines in real spending among the majority of households.
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