The bank’s final meeting minutes for 2022 reveal it is on a mission to lower inflation amid concerns about higher spending over summer holidays without Covid restrictions.
The news was just as bad for renters too, with the central bank forecasting “further large increases in rents” over the next few years, in what is already a “tight” market.
The bank chose to raise interest rates by another 25 basis points this month, despite considering a 50 basis point rise, bringing the overnight cash rate to 3.1%. But it has warned that, in the new year, if inflation was not heading down, and substantially so, higher interest rates would continue to be used to put a brake on spending.
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