The Persistent Challenge of Inflation

Inflation has remained a significant concern in the economy, especially in the context of housing and consumer prices. Many borrowers are feeling the pressure as high interest rates persist, resulting in a stagnant housing market and individuals dipping into savings for daily necessities. The Reserve Bank has surprised many by maintaining its hawkish stance on monetary policy, extending high interest rates even amid a technical recession. This enduring inflation is linked to domestic factors such as government fees, housing prices, and insurance costs, which are not easily influenced by changes in interest rates.