For this group, in the absence of other interventions from outside the financial system, a significant number of engaged borrowers in the deepest levels of distress will, at best, remain in the highly stressful position of not being able to afford the home that they are living in with no solution in sight, and at worst be at serious risk of losing their home.
Total CPI inflation is projected to rise above the 2 per cent inflation target in the second half of this year, peaking below 3 per cent near the end of 2007 before returning to the target by mid-2008.