Part 4/10:
Despite the political allure of reducing interest rates, Kryton maintains that maintaining those rates is prudent until inflation is closer to targets. The nuanced economic reality suggests that a cautious approach is necessary to avoid fueling additional inflationary pressures and housing market instability.
Migration and the Housing Crisis
The ongoing housing crisis in Australia has been aggravated by rising migration, which has pushed up property prices and, in turn, fueled inflation. Migration influx increases demand for housing, which drives up prices—an effect that is only compounding the affordability crisis faced by many Australians. These intertwined factors highlight the complex policy challenges in balancing population growth and housing affordability.