RBA chief economist Sarah Hunter signals more rate rises to come
RBA chief economist Sarah Hunter signalled another rate rise is likely, taking rates to a 15-year high of 4.6 per cent.
Sarah Hunter, the Reserve Bank's chief economist, signalled that another interest rate rise is likely next week. All four major Australian banks expect the RBA to lift the cash rate to 4.6 per cent, the highest level in 15 years.
Hunter said the RBA remains focused on bringing inflation back to its target of 2 to 3 per cent, which has stayed above target for 12 consecutive months. Hunter explained that interest rates work effectively because they filter through every part of the economy.
The Commonwealth Bank, Australia's biggest home lender, has already hiked fixed-mortgage rates equivalent to two RBA increases. ANZ is the only major bank expecting two further hikes by early November, which would push rates to 4.85 per cent, unseen in 18 years.
- 4.6 per cent
- Expected cash rate after next hike
- 12
- Months above inflation target
- 4.85 per cent
- ANZ forecast rate by November 3
- 2 to 3 per cent
- RBA inflation target range
Why it mattersPersistent inflation above the RBA's 2-3 per cent target means the central bank is likely to keep raising rates to bring prices back under control.
AustraliaAustralian homeowners will see higher mortgage payments if the RBA follows through, while renters may face rising rents as landlords pass costs on.
✓ Claims checked against the source and corrected before publish. checked 2 d ago
