The Reserve Bank is being urged to keep the cash rate on hold for an extended period of time as Australians suffer under the weight of expensive interest rates and rising living costs.
Speaking to Real Estate Business' sister publication Smart Property Investment, Yellow Brick Road chairman Mark Bouris said Australian borrowers were suffering at the expense of the commodity boom.
While pockets of Australia are benefiting from the strong demand for the country’s commodities, Mr Bouris said the average Australian is reaping little from the mining boom and is instead being hit with “ridiculously” high interest rates, all to keep the inflation rate in check.
“The system of slugging small business owners and mortgage holders to make them stop spending, just so we can get an average data number to a level everyone is happy with doesn’t make sense,” Mr Bouris said.
Mr Bouris said the federal government should be looking at using fiscal policy in tandem with monetary policy to better manage the two-speed economy.
“Fiscal policy is way, way, way behind,” he said.
“The federal government needs to introduce fiscal policy to give people some sort of mortgage relief.”
Mr Bouris said a means-tested rebate for mortgage holders was one way the government could look to help Australians.
“Fiscal and monetary policy need to be working in lock step, but they’re not.”
Mr Bouris’ comments follow the launch of Yellow Brick Road’s RBA Appeal which is encouraging Australians to tell the Reserve Bank how interest rates are impacting their financial position.
“Middle Australia, the engine room of our country, is being ignored and small businesses are closing down around us. We need to take a stand and tell the RBA what’s happening in our neighbourhoods and communities,” Mr Bouris said.