Another rise in interest rates anticipated as early as next month would be a double whammy to Australia’s housing market, sending house prices into a steeper decline and stifling demand for new homes.
Reserve Bank of Australia deputy governor Andrew Hauser’s comments on Wednesday that the inflation outlook had “materially worsened” and the bank faced “hard choices” prompted economists to predict a fifth rates increase this year, to 4.85 per cent from the current 15-year high of 4.6 per cent.
Gift articles to anyone you choose each month when you subscribe.
