The Commonwealth Bank warns there is a 'clear risk' that the RBA will lift interest rates too high, too fast because of the lags in how they are passed on to mortgage customers and affect their cash flow and spending.
CBA warns that households have yet to feel the financial pain of the Reserve Bank's last few rate rises.abc.net.au/news/cba-warns-of-lags-as-rba-set-for-super-size-interest-rate-rise/101406834The Commonwealth Bank is warning of the risk a three-month mortgage lag poses to the economy if the Reserve Bank keeps raising interest rates aggressively.The RBA is widely expected to raise the cash rate target by 0.
But most borrowers are only just feeling the effects of the first two rate rises, according to the Commonwealth Bank's head of Australian economics Gareth Aird. CBA says it generally takes around three months for an increase in the cash rate to show up in higher minimum monthly repayments for its customers.
CBA's head of Australian economics Gareth Aird warns that the RBA might hike rates more aggressively than it needs to. Olivia Cummings, director of jewellery company Cleopatra's Bling in Melbourne, said trading conditions were unpredictable, but generally strong.
Australia Latest News, Australia Headlines
Similar News:You can also read news stories similar to this one that we have collected from other news sources.
Another double rate hike coming from RBA but brakes may be applied soonWhen the Reserve Bank heavyweights next gather around the board table, the question will not be about whether to raise rates, but by how much, writes business editor Ian Verrender.
Read more »
ASX rises despite Wall St's Friday fall, traders eye tomorrow's RBA rate decisionAustralian shares have opened higher, ahead of the Reserve Bank's interest rate decision on Tuesday.
Read more »
Big banks hit brakes on housing but lure new customers with discountsAs the RBA prepares to raise interest rates for the fifth straight month, the big banks slow their mortgage growth but discount rates for new customers.
Read more »
RBA inflation-busting rate rises to cost $1000 a month extra on a mortgageThe Reserve Bank is poised to lift interest rates at its meeting on Tuesday, taking the cumulative mortgage pain for some home buyers beyond $1000 a month.
Read more »
Greens call on Reserve Bank to ‘pause’ interest rates until after budgetThe Greens have called on the Reserve Bank of Australia to put interest rate rises on hold until after next month’s budget. |EXCLUSIVE by Anthony Galloway
Read more »