ERROL PARKER | Editor-at-large | Contact
The Reserve Bank Board has voted to keep interest rates on hold this month as the battle against inflation enters a new stage.
For the past year and a bit, the RBA has been lashing mortgage holders with successive rate increases which has seen many young homebuyers do their arse. Some have done their arse so bad, they’re selling their Metricon dogboxes for less than what they bought them for.
It’s forced the nation’s recent homebuyers to get second jobs, spend much less and pray to whichever flavour of celestial sky friend they like that times will get better.
However, for a section of the population, it’s heralded a boom.
Older Australians that own their own home and have large amounts of savings in super or bank deposits have been on a spending bonanza, which has kept the inflation beast healthy enough for the Reserve Bank to consider keeping up the fight.
Speaking to The Advocate today via wireless telephone, Reserve Bank boss Philip Lowe said things could’ve gone either way.
“We have to consider everyone when we make these decisions,” he said.
“Not every Baby Boomer is rich. But they probably had the best chance at being rich. Nobody under 30 now will be rich. On their own accord, that is. Many of them will be rich beyond their wildest dreams when their parents are dead. Provided the parents didn’t waste every last cent on a standard of aged care where they won’t end up on Four Corners getting flogged half to death with a walking stick. Aged care is expensive, man. Worse than school fees. You want to avoid that if you want your kids to drive a Porsche like you,”
“That’s August anyway, hopefully things improve before Christmas. Not that it’s my problem, I’ll be making par on the 10th at Bonnie Doon with half a bottle of Pepperjack in me while you’re still at work.”
More to come.
