Financenews.com.au

RBA’s blunt words for every mortgage holder

RBA Governor Michele Bullock has warned another interest rate hike could come before Christmas, with all four major banks now predicting a 25 basis point rise.

RBA Governor Michele Bullock has dished out a grim warning that more interest rate hikes could be coming for Australian homeowners before Christmas amid inflation fears.

The Long Sip
What happened

RBA Governor Michele Bullock told a parliamentary committee that further interest rate hikes before Christmas are possible as inflation remains too high.

The detail

The RBA has already raised rates three times this year by a total of 75 basis points, taking the cash rate from 3.60 to 4.35 per cent.

What it means

All four major banks are predicting another 25 basis point rise, and the RBA does not expect inflation to return to its target midpoint until late 2027.

For you

A fourth hike this year would take the cash rate to 4.60 per cent, the highest since November 2011, adding more to variable mortgage repayments.

Full story at news.com.au

What readers are saying

richardr
Bullock says housing prices are still 50 per cent higher than early 2020 despite recent falls - that's the real story. If rates go to 4.60 before Christmas, a lot of people are going to find out whether their serviceability assessments were actually realistic or just paperwork.
FootscrayChris
Watch what the banks are actually predicting versus what the RBA signals. Bullock's careful language about 'may be required' leaves room, but all four majors are already saying 25 basis points by year end - that's the real tell on where this is heading.

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