A few years ago RBA Governor Philip Lowe claimed interest rates were unlikely to rise until 2024, armed with this information many decided to take-out a mortgage, at the height of the Covid-19 pandemic.
But as inflation continues to soar, the Reserve has no choice but to lift rates earlier than expected.
Some claim it’s a breach of trust and heads should roll. Prime Minister Anthony Albanese says he has confidence in the RBA, but concedes rate hikes aren’t easy to manage.
Addressing the Coalition partyroom, Opposition leader Peter Dutton says Labor is struggling to manage the economic challenges.
The average home loan is expected to rise by a further $200 a month.