The central bank will almost certainly raise the official interest rate next week
Okay, so it’s good news for:
- investors (who’ll have less competition from homebuyers and who will be able to promptly pass the rate rise on to their tenants);
- the rich; and
- people who prey on social unrest.
But it’s very bad news for:
- homeowners with mortgages (whose repayments will rise);
- renters (whose rents will rise);
- those who’d like to buy a house to live in (who will be even less able to compete with investors);
- parents (who want their adult offspring to finally move out); and
- the community as a whole, which benefits from the existence of a healthy middle-class.
Another step widening the gap between rich and poor. Well done, Australia.