RBA set to raise rates again as inflation stays stubborn
HSBC chief economist expects September rate rise with a chance of another in November if inflation stays high.
The Reserve Bank is expected to push the cash rate higher this month as Australia battles stubborn inflation. HSBC chief economist Paul Bloxham said the RBA will likely raise rates in September while warning there is a chance another increase could follow in November.
Inflation remains too high while the economy is growing faster than it can handle, Bloxham said. The economy is also supply-constrained: Australia can't build enough houses, doesn't have cheap energy, and lacks efficiency to meet demand.
Higher rates slow spending, but Bloxham said the real fix is building more supply. The warning comes as households struggle with higher mortgages and rising living costs.
- Paul Bloxham, HSBC
- Chief economist
- September
- Expected rate rise
- November
- Possible second rise
- Housing, energy, and efficiency gaps
- Supply constraints
Why it mattersMore rate rises mean higher mortgage payments for borrowers, making it harder for Australians to afford homes and other major purchases.
AustraliaMost Australian borrowers face further mortgage increases, pushing more households toward tighter budgets and straining renters as landlords raise prices.
✓ Claims checked against the source and corrected before publish. checked 9 d ago
