The cash rate is going higher. It isn’t fear mongering to consider it reaching 5%+ - While it is unpleasant for debt holders to think about, the cash rate is almost certainly going up to at least 4.60% (based on current market pricing). Talking about it reaching 5%+ isn’t someone selling you doom. Take a look at two fairly comparable countries: Canada CR 4.75%, CPI 4.4%, unemployment rate 5.2%. NZ CR 5.50%, CPI 6.7% unemployment rate 3.4%. Meanwhile: Australia: CR 4.10%, CPI 6.8%, unemployment rate 3.6% Canada has a higher unemployment rate, lower inflation and only recently hiked from 4.50 to 4.75%. NZ has a slightly lower CPI and a better rate of unemployment with a cash rate that is 1.4% higher. I am not here to argue about pain, hurt or fairness. I am posting facts for you to think about next time news.com.au tells you 'surely rates can’t go higher!' because they absolutely can.| ASX Mining News & Discussion

The cash rate is going higher. It isn’t fear mongering to consider it reaching 5%+ - While it is unpleasant for debt holders to think about, the cash rate is almost certainly going up to at least 4.60% (based on current market pricing). Talking about it reaching 5%+ isn’t someone selling you doom.

Take a look at two fairly comparable countries:
Canada CR 4.75%, CPI 4.4%, unemployment rate 5.2%.

NZ CR 5.50%, CPI 6.7% unemployment rate 3.4%.

Meanwhile: Australia: CR 4.10%, CPI 6.8%, unemployment rate 3.6%

Canada has a higher unemployment rate, lower inflation and only recently hiked from 4.50 to 4.75%.

NZ has a slightly lower CPI and a better rate of unemployment with a cash rate that is 1.4% higher.

I am not here ...

https://www.reddit.com/r/AusFinance/comments/149vugt/the_cash_rate_is_going_higher_it_isnt_fear/

... view | 157 points by Cryptobro 3y

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Isntstaffbutis • 3y

It could happen if inflation stays high

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Isntstaffbutis • 3y

Whilst I agree with your post, I'd like to add that the current market pricing doesn't mean much when it also can change and at times, can be wrong

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Isntstaffbutis • 3y

Except both these countries have a much higher portion of home loans on fixed rates. Not saying cash rates won’t go higher but you aren’t exactly comparing apples with apples

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Isntstaffbutis • 3y

So a recession with sticky inflation against a background of increasing interest rates. Who would have thought creating the majority of your debt for non-productive assets could possibly end this way? What a mess.