The Reserve Bank is expected to hike interest rates tomorrow. 9News
bump of 0.25 per cent rise would increase monthly repayments by $131, with a 0.5 per cent rise translating to a hefty $265.
"The Reserve Bank has signalled we're going to see higher interest rates over the next six to 12 months," Denniss warned. "That will mean mortgage payments rising by thousands of dollars depending on how big people's mortgages are." Given recent jumps in inflation and increased costs of food, petrol and energy, Denniss said employers now needed to start raising wages, otherwise the government may need to "step in and push things along".
"Previously the Reserve Bank has said it wouldn't increase interest rates until wages started to rise that's clearly not happening," he said.Some economists are hedging their bets on the standard quarter of a per cent interest rate hike, but others say the RBA could move much more aggressively and double it to 0.5 per cent.