RBA hikes interest rates for seventh consecutive month, issues grim inflation forecast

It is the second time in 12 years the RBA has lifted rates on Melbourne Cup day, following a move of similar size in 2010 just before French raider Americain claimed the race.Australian households already under mortgage stress will find today's hike will add more pain to the monthly budget.

The current level of 2.85 per cent is now the highest cash rate Australia has seen since April 2013.In his monetary statement, RBA Governor Philip Lowe issued a warning that it now expects inflation to peak at 8 per cent by the end of 2022 - higher than the Federal Budget forecast of 7.75 per cent. "A further increase in inflation is expected over the months ahead, with inflation now forecast to peak at around 8 per cent later this year.

"The Board remains resolute in its determination to return inflation to target and will do what is necessary to achieve that."Buyers who purchased at the peak of the market may be finding themselves trapped as "mortgage prisoners".Economists at both Westpac and ANZ are now forecasting that the cash rate could increase to 3.85 per cent before levelling out.

"While some families are doing it tough, many households still continue to have significant savings buffers at the ready for a rainy day, with the latest APRA data recording yet another increase in household deposits to a record $1.32 trillion.

Reserve bank seems to be forcing a recession, this will force people to struggle paying the mortgage repayments some forced to sell at a loss. If the rates go up so does the cost of living

'You will own nothing and you will be happy'- Klaus Schwab WEF

There is an agenda to all this and the Globalists are at the fore front for all of it. They want to put the screws into everyone and make life difficult for all.

The buy now, pay later generation are getting a massive reality check.. And its NOT over by a long way...

Whoever borrowed way back when it was low, I hope you expected the rate rise. Don't borrow what you can't afford with a rate rise of 4 or more.

Already own my home so dont care about mortgages going up.

9NewsPerth v bad vbad

I’m starting to believe that the RBA Board has no idea of real-life & going raising rates isn’t working while’core’ living expenses are part of CPI calculations. Every household ‘need ‘access to fuel, gas & electricity etc at reasonable costs. To date raising rates hasn’t Worked.

Would you say this is a control demolition of the economy and the petrol dollar 🤔

9NewsSyd And banks making $9 billion in profits. Do you seriosuly think that home owners that have a mortgage are the ones with disposable income that’s pushing inflation? No! It’s the rich and wealthy profiting off the vulnerable. And yet- we pay!

With the way Labor is spending on ridiculous crap, and cutting the populations energy, except it to get WAY WAY WORSE.

Soon no one will be able to afford a house or apartment here. It's insane...

good, term deposit rates going up

9NewsSyd And yet banks made $9 billion in profits last year… maybe inflation is due to corporations expanding their profit margin and people on the RBAInfo have million dollar salaries…maybe that’s the problem! Not the home owner occupier that spent 12 years saving for a home

Greatest transfer of wealth in the history of the world..and you all allowed it to happen through being to scared to say no to daddy government when he threatened to take your toys off you..probably lose them soon anyway hey

A*holes... This will impact the poorest of society. F*ing capitalism.

And there will be more as Australians learn that life wasn’t meant to be easy.

RBA wants more pain on home owners wants a lot of them going broke. So evil

Who voted for the Labor? Please enjoy

Spending is up because the people have been shackledto their homes for 2 years, now restrictions are lifted the cash they stored is being spent. This is nothing but a cash grab by the banks. Penalising us poor home owners is not working.

Bottom line is it’s just to easy these days to find someone willing to lend money or give you a credit card, and people end up with multiple loans and credit cards in which they have debt with no way of paying it off. Modern thinking= just buy it and worry about the money later.

Good times with Labour ⬆️⬆️⬆️⬆️⬆️everything always gets worse ⬆️⬆️⬆️⬆️⬆️⬆️⬆️⬆️⬆️⬆️⬆️⬆️⬆️⬆️⬆️⬆️

Int. Rates are Still SOOOOO LOW! Can't Afford it- Do Not Credit It BOZOS!!!

So many BMW and Merks SUVs everywhere… and many more 4WDs and American Trucks .. people seem to have the money so cop it

Thanks Albo

When did the Labour federal government come into power? Wasn't that in May 2022?

How are they computing the correlations of rate and inflation without equilibrium assessment ?

I would love to get at least 10% on my savings!

9NewsAdel The rates that stop the nation.

About the same amount of time Albo has been in office. auspol

When did Albo become PM again?

Until the next “free money” printing

It can be 5 or more..

what for?

All the fake millionaires getting smashed by the banks

That’s still a fairly low interest rate

wonderful news.

This is absolutely reckless. Let the already installed increases take effect before piling on more hurt... Is anyone making these decisions living it tough and can understand the impacts this is having?

9NewsMelb Not high enough, RBAInfo are a bunch of cowards afraid of property lobby. Inflation is out of control interest rates must be brought up higher faster

Hooray! But the people borrowing my money via the Commonwealth Bank are still getting it cheap.

🖕

Oh hello consequences to locking down an entire country.

ACurrentAffair9 Bet there'll STILL be 'record spending' at Xmas time... 'Living within your means' is a completley foreign concept to most thesedays...

And inflation keeps rising to 8% now, almost like them telling us the rate rises are to curb inflation was a lie… I’m shocked

People really need to stop spending money

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