There should be an mutually tied tax for this. When the rate goes up for borrowers so does the tax on retirement savings. It's bullshit to hit the people with the most expenses only.
sure, you'd need to socalise banking for that to occur, it's only because of US Government backed Freddie and Fannie offering that deal that commercial banks had to compete.
Probably doesn't need to just hit "retirement savings" but you could say savings as a whole. At least that way offset accounts wouldn't be negatively impacted.
There already is. The RBA only sets the "cash rate". Your mortgage isn't at the cash rate, and neither are the loans businesses take out. They're influenced by it, and a lot of banks will essentially have their rates rise and fall in lockstep with it, especially for regular people who don't have the negotiating power to lock in special agreements, but they don't have to.
That's kind of the case in the US. They don't have variable-rate home loans, so only business borrowing is affected by the US Federal Reserve's interest rate.
That will stop people wasting so much money on checks notes fuel and food. In the RBA's defence, they are damned either way, and they have no other influence mechanism.
The bank’s fight against inflation is much harder due to the extraordinary boom in household wealth, which is keeping the economy motoring along. Expect interest rates to stay high.
14 Comments
notgold@aussie.zone · 5 pts · 102d
There should be an mutually tied tax for this. When the rate goes up for borrowers so does the tax on retirement savings. It's bullshit to hit the people with the most expenses only.
zero_gravitas@aussie.zone · 1 pts · 101d
We could also not hit people with mortgages at all. In the US all mortgages are fixed-rate for the whole term of the loan.
hanrahan@slrpnk.net · 2 pts · 98d
sure, you'd need to socalise banking for that to occur, it's only because of US Government backed Freddie and Fannie offering that deal that commercial banks had to compete.
YeahToast@aussie.zone · 1 pts · 102d
Probably doesn't need to just hit "retirement savings" but you could say savings as a whole. At least that way offset accounts wouldn't be negatively impacted.
hanrahan@slrpnk.net · 1 pts · 98d
ues, but that change won't come by voting ALP/LNP/ONP (the latter just hate ex-pats)
Until the Overton Window moves nothing much changes.
DavidDoesLemmy@aussie.zone · 3 pts · 102d
Just raise it. Inflation is awful.
ljoe@aussie.zone · 2 pts · 102d
There needs to be more than one interest rate.
Zagorath@quokk.au · 3 pts · 102d
There already is. The RBA only sets the "cash rate". Your mortgage isn't at the cash rate, and neither are the loans businesses take out. They're influenced by it, and a lot of banks will essentially have their rates rise and fall in lockstep with it, especially for regular people who don't have the negotiating power to lock in special agreements, but they don't have to.
zero_gravitas@aussie.zone · 2 pts · 101d
That's kind of the case in the US. They don't have variable-rate home loans, so only business borrowing is affected by the US Federal Reserve's interest rate.
Dimand@aussie.zone · 2 pts · 101d
That will stop people wasting so much money on checks notes fuel and food. In the RBA's defence, they are damned either way, and they have no other influence mechanism.
minimumchips@aussie.zone · 2 pts · 101d
And consequently this degrades peoples trust in our public institutions. "They only have one lever". Yeah, and it isn't having the intended effect.
hanrahan@slrpnk.net · 1 pts · 98d
the problem is we're too rich
https://slrpnk.net/post/37557537
hanrahan@slrpnk.net · 2 pts · 98d
https://slrpnk.net/post/37557537
No1@aussie.zone · 1 pts · 102d
Por que no los dos?