It looks like inflation will soar to nearly 8 percent by Christmas and be chased by interest rates that together will send people’s ability to pay for things further into reverse, halt the jobs boom, and put the brakes on economic growth.
I know many people are preparing for a rocky road ahead. But I don't necessarily agree with them.
If the government and Reserve Bank get their settings right, inflation will moderate next year and slowly return to within the RBA’s target range, unemployment will hover around 4 percent, real wages will start to grow, and we will end up with that desirable soft landing.
However, I'm a fan of being prepared and not having a crisis rather than ending up in a crisis and not being prepared.
So once a month, I catch up with leading economic commentator Pete Wargent in these monthly Big Picture podcasts when we look at the macro factors affecting our economy and our property markets.
Links and Resources:
Metropole’s Strategic Property Plan – to help both beginning and experienced investors
Get a bundle of free reports and eBooks – www.PodcastBonus.com.au
Pete Wargent’s new Podcast
Pete Wargent’s blog
Shownotes plus more here: To buy or not to buy? That’s the question, with Pete Wargent
