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He warns that lower interest rates typically inflate house prices, worsening the existing housing crisis in Australia. While homeowners might benefit from reduced loan costs, Kryton highlights that the third of Australians who do not own homes could suffer from escalating property prices, further exacerbating inequality. He critiques the theoretical basis for the RBA's rate manipulation, stressing that the real-world impact, especially on affordability, warrants a cautious approach.
Migration and Renewable Energy: The Political Economic Dilemma
On the housing front, migration continues to be a driving force behind rising property prices, contributing to inflation. Kryton points out that increased population influx fuels demand, making housing affordability even more elusive.