Inflationary Pressures and Rising Cost of Living: How Vulnerable are We? | Belinda Allen, CBA

Interest rates have been rising every month since early this year…

To make matters worse, inflation is also yet to be under control.

How vulnerable are homeowners and investors in a high inflationary environment and what do we need to be most worried about?

Senior Economist at the Commonwealth Bank Belinda Allen joins us today to talk about Australia’s current economic landscape… How can we measure the impact of rising interest rates on household spending, mortgage arrears and the erosion of our buffers?

We discuss the lag effect of interest rate rises, household spending intentions, inflationary pressures and more!

If you enjoyed the show, do like, rate, subscribe, and share us on social media and if you have your own questions you need clarity on, email us at [email protected]!

See you in the episode!

Episode Highlights:

1. Belinda Allen’s overall observation on 2022 [01:44]
2. The fundamental drivers of inflation [07:04]
3. Limiting household spending to maintain buffers [11:53]
4. Wage growth in Australia [21:30]
5. How immigration impacts population growth [24:40]
6. Global inflation and the volatility of financial markets [27:22]
7. Economic growth’s effect on climate change [31:52]
8. Banks’ responses to problem hotspots [38:39]
9. Higher retail spending during Christmas [48:04]
10. Why forecasting during COVID was difficult [49:19]
11. The biggest challenge is getting the pricing right [56:12]

About our Guest:

Belinda Allen is a Senior Economist at the Commonwealth Bank. She has extensive experience as a financial markets economist. Belinda joined the Commonwealth Bank in 2017. Her work primarily involves developing and communicating views on the Australian and international economies.

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• Send in your questions to: [email protected]

Find this episode on our website:

https://www.theelephantintheroom.com.au/podcasts/257

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