The Reserve Bank of Australia (RBA) has been implementing various monetary policy measures to address the rising cost of living in the country. This is in response to the increasing inflation rate that has been plaguing the Australian economy over the past year.
However, the recent drop in inflation is a strong and positive sign that the RBA’s policies are starting to take effect, and that Australian consumers can expect some relief soon. According to Simon Docherty, Chief Customer Officer of Frollo, who said “the drop in inflation is a strong and positive sign that the RBA’s monetary policy measures are starting to take effect. This is welcome news for Australian consumers who have been struggling with the rising cost of living over the past year.”
“Data from our budgeting app shows that consumers have been allocating an increasing portion of their income towards essential expenses like groceries, healthcare, and insurance. Many have also turned to unregulated credit sources such as Buy Now Pay Later providers, with the average BNPL user spending over $400 per month on repayments.”
“As a result, it was only a matter of time before consumers began to reduce their spending and tighten their budgets. However, policymakers must balance the need to slow down the economy with the potential impact on consumers and small businesses. It’s important to ensure that the economic slowdown doesn’t have a severe knock-on effect on everyday Australians.”
