I was just thinking in my limited laymens experience. The RBA keeps talking about the inflation and keeping an eye on it and the magical 2-3% or the rates are just goiing to be driven up.
We have oil going up by the day and some are now predicting possibly $200 a barrel.
Government says it can't do anymore for those hurting with petrol prices etc.
Food costs are going up, transport costs etc etc etc.
What forces have to come into play for interest rates rising threat to diminish apart from reduce spending people are already starting to feel the pinch.
What can people do:
reduce investing if borrowing
not buy investment properties?
More and more i hear some desperation in peoples voices for all walks of life on radio talk back shows etc.
Or do we throw caution to the wind and get every cent into this mining boom which will probably be part of driving inflation up and attempt to make some money to reduce our debts.