ANZ: RBA needs to keep raising rates to slow growth

ANZ Bank CEO Shane Elliott says the Reserve Bank of Australia has been forced to take action in raising interest rates as the country’s economy remains strong. Unfortunately, Elliott said, the way to solve the problem is to create a little pain, create a little fear. This is to prevent people from spending, so the economy will slow down somewhat. While that sounds harsh, the Fed needs to keep raising rates. Counterintuitively, homeowners seem to be doing just fine, but those who rent or have less secure employment are the ones suffering. They are currently bearing the brunt of changes in the cost of living, so this was an unexpected result.