As soon as the RB starts hiking the OCR, our humble dollar is going to climb even more.
Under the current set up we are pawns in a very expensive game.
Next year higher mortgages, screwed exporters and less tourists.
Does any one else care that the billions that Bill is borrowing is at 5.5%?
Because to me, at that rate, he is stoking the fire. Telling the world that we are the suckers who will cough up for high rates. He should tell the lenders that we will pay 2% otherwise they can invest their money in places like Dubai.
The world wants our security, lifestyle and food.
We should be charging them the premium.
Of course, I suppose that if we actually did something productive with the borrowed billions that would help.