<\/p>\n
Why not target people with lots of money and no mortgage?<\/p>\n
ANALYSIS<\/p>\n
A recent report by Roy Morgan found that about 1.3 million Australians are currently experiencing mortgage stress.<\/p>\n
They desperately need a rate cut, but for tens of thousands, the only way to get decent mortgage relief may be to lose their jobs.<\/p>\n
One of the economic factors the RBA monitors closely when making cash rate decisions is unemployment and, ideally, it would like to see unemployment reach 4.5 per cent.<\/p>\n
Before the July decision to hold, unemployment was still at 4.1 per cent.<\/p>\n
Of course, the next set of data revealed it had jumped to 4.3 per cent, which meant there were about 30,000 more people out of work.<\/p>\n
With Australia\u2019s labour force around the 13 million mark, we\u2019d need a similar number to lose their jobs again to get to 4.5 per cent.<\/p>\n
Are you one of the 30,000 odd Aussies who are still needed to take one for the team in order to bring about more mortgage relief? Of course, a rate cut won\u2019t do much for you if you have no income.<\/p>\n
MORE:Bombshell way RBA rate calls are backfiring<\/a><\/p>\n The good news is that the 4.5 per cent figure doesn\u2019t need to be achieved immediately.<\/p>\n RBA Governor Michele Bullock said she wants to see a gradual easing in employment.<\/p>\n \u201cHaving your hours cut is tough, but it\u2019s often preferable to losing a job altogether,\u201d Ms Bullock said, while addressing a fundraising lunch last week.<\/p>\n Michele Bullock, Governor, Reserve Bank of Australia. Picture: Monique Harmer<\/p>\n I agree. Perhaps we could begin by cutting Ms Bullock\u2019s hours so she works four days a week. That would take about $200,000 of potential spending out of the economy, or the equivalent of the jobs of two average wage workers. Ms Bullock would just have to tighten her belt a bit and make do with $800,000 a year. Luckily for her, she doesn\u2019t have a mortgage on her own home because she paid it off on a half price interest discount deal for RBA employees.<\/p>\n<\/p>\n