BREAKING: Home buyers are being warned by the Reserve Bank to prepare for more interest rate rises, saying it has to get the cost of money back to a normal level to head off inflation pressures that would leave all Australians worse off.
Home buyers are being warned by the Reserve Bank to prepare for more interest rate rises, saying it has to get the cost of money back to a normal level to head off inflation pressures that would leave all Australians worse off.
Lowe said home buyers, who took on record levels of debt through the Covid recession, said they should be prepared for more interest rate pain.“As we chart our way back to 2 to 3 per cent inflation, Australians should be prepared for more interest rate increases,” he said. “Many households have not previously experienced a period of rising interest rates. Households are also experiencing a decline in real incomes because of the higher inflation and some of the large gains in housing prices over recent years are being unwound.”
He said while many of Australian’s inflation pressures at present were being transmitted from overseas, there were domestic factors at play including the strong growth in domestic spending.the 2 to 3 per cent target range over time,” he said.
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