In fiscal 1997, they are likely to register a substantial decline as the effects of reduced interest rates will have diminished. In the meantime, the net interest margin of financial institutions -- that is, the differential between financing costs and investment returns -- remains at a level equal to the average since the latter half of the 1980s.
Sources: ABS; RBA  As we know from the 1970s and 1980s, high inflation is damaging and undermines people’s living standards. While the circumstances that gave rise to the current inflation are different, the effect of inflation is the same. It erodes the value of savings, puts pressure on household budgets and hurts people on low incomes the most.