The Reserve Bank is widely expected to lift interest rates by another quarter of a percentage point, making it nine increases in a row. Follow live.
By Andrew ThorpeLast week, Deutsche Bank Australia's chief economistproduced research, leaning on what economists call the Taylor Rule, that indicated the Reserve Bank would likely hike interest rates by 25 basis points four times this year.A week on, Mr O'Donaghoe says he's never received so much media interest in a piece of research.
"I think that reinforces just how sensitive Australian households are to RBA policy, because unlike in countries like the US, mortgage interest rates in Australia key directly off the cash rate," he explains. Mr O'Donaghoe says he hopes the commentary of economists like him has a role in potentially limiting how aggressive the Reserve Bank ultimately has to be with interest-rate hikes - by limiting household spending now due to public awareness of more rises to come.
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