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The Times

Expect the RBA to go easy on interest rate hikes from now on – we can't afford rates to climb as steeply as the market expects

  • Written by Peter Martin, Visiting Fellow, Crawford School of Public Policy, Australian National University
Expect the RBA to go easy on interest rate hikes from now on – we can't afford rates to climb as steeply as the market expectsShutterstock

By lifting its cash rate by 0.5 points, from 0.35% to 0.85%, the Reserve Bank has added about another $120 per month in payments for a A$500,000 mortgage.

If financial markets are to be believed, by the end of this year it will have added a total of $800 per month – and, by the end of next year, a total approaching $1,000 per...

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