Has the RBA lost the plot?

The simple answer is no, they haven't.

Inflation must be contained because if it gets out of control, it could lead to some very dire consequences.

Inflation is a common concern for many countries, and Australia is no exception.

The rise in inflation can have a significant impact on the real estate market, with potential consequences for both buyers and sellers.

One of the main dangers is that it can lead to a decline in real estate prices.

When inflation increases, the cost of living also increases, and many people may find it difficult to afford the same standard of living that they previously enjoyed. This can result in a decline in consumer confidence, leading to a drop in demand for real estate.

Another danger of rising inflation is that it can cause interest rates to increase as we have seen in rapid succession from the RBA over the last 12 months. Higher interest rates can make it more expensive for people to borrow money, including for buying a home. This can result in a decline in demand for real estate, as fewer people are able to afford to purchase a home.

Moreover, rising inflation can lead to a decline in the purchasing power of people's savings, which can impact their ability to save for a down payment on a home. This can result in a decrease in demand for real estate, as fewer people are able to afford to buy a home.

For those who already own a home, the increase in the cost of living can make it more expensive for homeowners to maintain their homes, which can result in a decline in their standard of living.

While we all dread the moves made by the RBA, the dangers of rising inflation on the real estate market in Australia cannot be ignored. While I would argue that a lot of their advice to the broader population over the last two years has been negligent, at best, we are where we are, and we all have to deal with the current reality.

It is important for both buyers and sellers to be aware of the potential consequences of inflation and to make informed decisions about their real estate investments. It is also important for the government and central bank to take proactive steps to manage inflation and to ensure that the real estate market remains stable and steady.