Matt Grudnoff
Senior Economist

Last 2 questions from voters. Since no one is going to try and answer these questions I’ll have a go.

How can we make housing more affordable?

We need to reform the capital gains tax discount and negative gearing to stop investors bidding up the price of housing. This will also raise billions of dollars that could be used to build more housing.

Why haven’t interest rates come down?

Because the RBA is failing to understand where inflation is at. When the March quarter CPI comes out at the end of this month, it is more likely to be below 2% than above 3%. The RBA should already have cut. They haven’t because they wrongly believe that a wage price spiral is about to break out.