It’s hard to find a group that directly benefits from high interest. Business in particular doesn’t like it. Low interest rates essentially “pump” the economy and it significantly increases investors tolerance for risk.
You also need to ask yourself “What is “high” interest and what is “low” interest? Frankly, the current base rate in Aus 3.1% (approx.), still lower than the 3.8% average from 1990 to 2023. There have been times, 1990 specifically, when it reached as high as 17%.
The reality is somewhere in the 3%-5% area is probably ideal. This leaves room for the government to increase and decrease the rate in response to economic conditions. When you hear “monetary policy” this is what they are talking about.
IMO (and many others) interest rates have been far too low for far too long. It helps create as many problems as it solves. I understand this makes things difficult for the average buyer, but that’s the point. It helps prevent really risky speculative behavior. For example, many believe the recent problems with the housing market (astronomical prices and purchases by foreign investors) are tied to the low rates.
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