Part 3/10:
Kryton argued that the Reserve Bank of Australia (RBA) should reconsider rate cuts, as lowering interest rates might inadvertently inflate asset prices, particularly in the housing market—which is already under strain. Interest rates have a known correlation with house prices; reductions tend to boost property values. With around one-third of Australians who do not own homes being particularly vulnerable, Kryton warns that rate cuts could exacerbate existing housing affordability issues. He emphasized that the relationship between interest rates and inflation is largely theoretical and that a focus on lower rates might ignore the broader economic repercussions.