'Start making cuts to your budget and consider refinancing to a lower rate while you can.' 9News
That's the economic reality facing hundreds of thousands of Aussie homeowners who are staring down the barrel of consecutiveAnalysis from RateCity.com.au shows that if the RBA hikes rates every month, borrowers will be facing a national cash rate of 2.10 per cent by Christmas.The average Aussie mortgage holder is facing a near $600 monthly increase by Christmas 2022.
It may seem odd that interest rates are being hiked at the same time as numerous other daily expenses, but AMP's Chief Economist Shane Oliver says the RBA had no choice. "While the household debt situation is not as perilous as some would have it - with household wealth up more than household debt and many households well ahead on their payments - many will experience a significant amount of pain from higher rates," he said.
"We expect that while the RBA will raise the cash rate to 1.5 per cent to 2 per cent by year end, the peak in the cash rate will come at around 2 per cent to 2.5 per cent by mid next year. This is well below money market expectations for a rise above 4 per cent," Oliver forecasts.
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