The disadvantage of such a strategy, however, is that it could mean that we “fall behind the curve”, which may require even stronger moves later on. A more moderate approach, on the other hand, could allow for easier adjustment to changing circumstances, and a less volatile interest rate environment in the short to medium term.
In conclusion, the domestic economy is facing enormous headwinds, many of which are of our own making, and therefore within our capability to resolve. High on the list is the currently debilitating labour relations environment, and it is incumbent on all parties to resolve these issues.