Normal
I am a bit concerned that any attempt to kerb inflation could be a disaster, the issue being the cause of inflation, which in my opinion is caused by supply chain issues, increased transport costs and increased costs due to covid compliance requirements. It is not being caused by wage increases, low unemployment and an over-heated economy. Some sectors have seen wage increase but not many, yes the official unemployment rate is low but that is probably due to lack of foreign workers who can't get in the country, once they are allowed in, unemployment is likely to increase. I suspect that profit margins for most business have, due to increased costs, declined since Covid. So my view is that increasing interest rates now to reduce inflation, could prove to be a big mistake.
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