Aussie homeowners to be hit by FOUR more interest rate hikes before August as the government is slammed for devastating inflation surge: ‘The honeymoon is over. What are you going to do about it?’
- Reserve Bank forecast to raise interest rates
- Deutsche Bank predicts four more rate rises
Interest rates could rise four more times before the end of August in a massive blow to millions of Australians.
Deutsche Bank has made the dire forecast predicting the Reserve Bank of Australia will hike rates by a quarter of a per cent in February, March, May and August.
The increases would bring the official cash rate to 4.1 per cent spelling more pain for homeowners.
Residents on a $500,000 mortgage will be forced to pay an extra $250 a week.
Interest rates could be increased four more times before the end of August in a massive blow to millions of Australians
Government services minister Bill Shorten admitted he was ‘worried for people who are going to be doing it hard this year’
‘It is clear that our previous expectation of a 3.35 per cent terminal rate for Australia is insufficient,’ Deutsche Bank Chief Economist Phil O’Donaghoe said.
‘We now look for the RBA cash rate to rise to 4.1 per cent by August, with 25 basis points hikes in each of February, March, May and August.
‘In other words, we add 75 basis points of hikes to our previous terminal RBA call.’
Mr O’Donaghoe predicts the unemployment rate will jump from 3.5 per cent to 4.5 per cent within the next 12 months.
Some 100,000 people are expected to be out of work.
Government services minister Bill Shorten admitted he was ‘worried for people who are going to be doing it hard this year.’
‘If the Reserve Bank goes too hard, I think that’s a big problem for a lot of people,’ he told Channel Nine’s Today on Tuesday.
Host Karl Stefanovic demanded to know how Mr Shorten intended to help ease the financial pressures faced by thousands of families.
Today host Karl Stefanovic demanded to know how Mr Shorten intended to help ease the financial pressures faced by thousands of families
Mr Shorten said the government was already tackling the issue by lowering childcare costs, addressing Medicare underfunding and improving wages.
3AW radio host Neil Mitchell stepped in to slam Mr Shorten questioning what changes would be brought in for the short term.
‘You’re very quick to blame the previous government,’ he said. ‘The honeymoon is over guys, accept it.’
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