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Does RBA want to increase Interest Rates after jobs increase?

  1. Gillysrooms

    8,970 Posts.
    Depending what side of the fence your sitting, you don't want to be trusting the RBA to keep interest rates low if by them decreasing interest rates it has the effect of tricking enough employers to start slowing down the reduction of surplus staff or increasing staff, because as night follows day interest rates could be jacked up to higher levels than you could possibly imagined.

    The dilemma we face is ...do borrowers really want unemployment to drop? I say NO. And that mean we will want Tony Abbotts promise to create 1 Million jobs to fail, because if he succeeds then do expect interest rates to double at least imo. Luckily politicians cant rally create real jobs only govt jobs if they can collect enough taxes to pay for them or borrow as the ALP always end up doing to make their promises come true.

    I don't know if Treasury have ever worked out what the net benefit would be if unemployment was kept at about 6.5% ABS [ Roy Morgan 20%] instead of full employment at 4% ABS. I've always maintained that the other 93.5% of employed people who might have housing loans at 50% the rates that would apply if 96% had jobs should be pleased unemployment remains high. . That extra 2% unemployment rate is in reality saving every home buyer a big packet of interest.

    Have anyone one worked out how much does it cost to keep the unemployed on benefits as against the huge savings the borrowers are making?

    Does anyone know how many Home & investment borrowers there are in Australia?
    How much are each borrowed?
    How much interest they now paying lenders?

    How much do unemployed cost in govt payments to be kept unemployed and could this cost be substantially recovered through increased taxes on the benefactors of such a policy?

    Savers complain too soon that the RBA are costing them money because if they have a fixed deposit ...it remains fixed till maturity. Has someone worked out how much tax would ATO lose from savers collecting less interest?


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