FinanceNine.com.auInterest rates: RBA chief economist Sarah Hunter says one thing is needed to end rate rises
The RBA's chief economist says interest rate rises are the only tool that works to beat inflation, even as thousands of Australians struggle to keep their homes.
Reserve Bank assistant governor Dr Sarah Hunter defends the rate rises punishing mortgage holders, which comes at the exact moment the government’s tax changes shatter the housing market.
RBA assistant governor and chief economist Dr Sarah Hunter defended ongoing interest rate rises in a rare interview, saying they are the most effective tool to reduce inflation.
Hunter acknowledged the pain for mortgage holders, saying the bank tried wage freezes and credit growth targets in the past and found none of them worked as well as rate rises.
With Australia also failing to build enough homes, the combination of rate rises and a housing shortage means the pressure on household budgets is unlikely to ease soon.
The RBA says rates will keep rising until inflation is under control, so if your mortgage is under pressure, it may be worth talking to your lender now about hardship options.
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