Governor Lowe pointed out that wages growth is not 5-6 per cent in Australia as in some other countries, it's only a meagre 3½ per cent.
And, importantly, the reaction function is totally different because most mortgages are on variable rates (or short-term fixed rates).
Mortgage rates for households have lifted more quickly, and consumer sentiment has been absolutely battered already.
The proliferation of variable rate debt is actually a very useful feature of Australia's economy, allowing the policy to be adjusted more effectively.
As such, markets are pricing no further interest rate hikes (and steady declines over the next few years).
The one area which is expected to see ongoing inflation is rents, due to a massive housing shortage in the large capital cities.
However, interest rate hikes would not help here - actually, the opposite - and household sizes may well increase again over time.
Very few people wanted to utilize share housing during the lockdowns, but this trend may now have passed.
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