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Australians brace for rate hike

By webmaster
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The majority of Australians expect interest rates to go up before the end of the year, new research has found.

According to a poll by Loan Market Group, 67 per cent of respondents believe the RBA will hike the cash rate again within the next few months.

Loan Market chief operating officer Dean Rushton said there was an even stronger response in the 18-25 year age group, with 77 per cent expecting the RBA to take rates higher.

“Consumers are aware the RBA is looking to increase rates to battle rising inflation at least once during the remainder of the year after leaving rates on hold for the past six months,” Mr Rushton said.

“The RBA still needs to be cautious when considering rates because the impact on the retail sector could be severe when many families are already cautious over discretionary spending.

“Our survey shows younger people are keeping a close eye on what the RBA is planning to do as this will have a significant impact on whether they purchase property.

“We believe another rate rise will deter first home buyers, who are eager to purchase their first homes.”

Of the 475 respondents, just 18 per cent believe there will be no change in rates over the rest of the year, while nine per cent believe the cash rate could even come down.

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