Quote Originally Posted by charmingninjaman View Post
Yeah our currency exchange rate is definitely getting battered - and all these people crying about their mortgage and hating the RBA for interest rate rises don't understand that we are importing inflation because the RBA has been so TIMID with the rate rises compared with the rest of the world.
I'm in tech - and my expenses for staff and infrastructure has gone up significantly due to our exchange rate. This in turn gets passed on to my customers that are here.
That's exactly right, and the RBA being timid with interest rates is not their fault either. This is the doing of the governments of the day. When the RBA dropped rates to record lows, they did that with the expectation that the additional liquidity created would flow to productive use, to companies struggling during the pandemic as business loans, etc. Not funneled into buying ever more expensive non-productive assets like residential property.

Yet the governments didn't do anything to direct the liquidity. They simply let it flow where ever it went. You wouldn't believe how crazy it was back then. I was working in a big bank back then. We had people applying for "business loans" that were then actually used to buy residential properties. Can you believe that? The banks just turned a blind eye because they were making money, and what's the risk of buying good ol fashioned Aussie RE, right? It was a complete sham!

Ergo we're in this shitty position now. The RBA cannot increase interest rates because doing so would increase rents and mortgage service costs. Talk about being caught between a rock and a hard place!

The governments of this country are all idiots, regardless of which party they're from.