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The Guardian - AU
The Guardian - AU
Business
Greg Jericho

Now that Australia’s house prices are falling, does the RBA really need to raise rates yet again?

An auction sign hangs over the footpath of a suburban street
By far the biggest driver of inflation right now is housing prices, which are already falling and interest rate rises are massively increasing the cost of living. Photograph: Lisa Maree Williams/Getty Images


The Reserve Bank continues to signal it wants to kill inflation and yet what exactly still needs to be put to the sword? With falling house prices, will further rate rises now do more harm than good?

The cash rate is now at 2.85% and in the past seven months the Reserve Bank has raised the cash rate as fast as it has any time since it gained independence in the early 1990s and the inflation rate target regime began:

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