The crusty Reserve Bank of Australia, has issued its latest report on monetary policy and the Australian economy. Household disposable income will continue to decrease until, they optimistically predict, around the middle of 2024. Inflation will remain at 4.5 per cent to the end of this year, and will not drop under 3 per cent until late 2025, so expect the cost-of-living crisis to continue as well.
But of interest to us is the Reserve Banks cautious stance on mass immigration, which they say is not impacting upon inflation, but both factors offset each other. Even the ABC report coughs at this one: “However, if increased population growth has not greatly affected wages growth, it is unclear how it is not adding to inflation, given observations elsewhere in the RBA's statement.