Australian households face up to three more Reserve Bank cash rate increases, after carnage in global bond markets stoked speculation the central bank will be dragged into the US Federal Reserve’s efforts to tame inflation.
Just three days after the RBA left the cash rate on hold at 4.1 per cent, fresh evidence of the strength in the US labour market prompted investors to raise bets that further monetary policy tightening will be needed in the world’s largest economy, triggering a steep sell-off in equities and crunching the Australian dollar.
“Central banks including the RBA don’t want to hike rates, but they might be forced into it,” said Vimal Gor, chief investment officer at Sydney asset manager Trovio.
At Source Financial, we are expecting that refinancing, purchasing property and selling property will become difficult over the next 6-12 months.
It is time to act now so you can withstand the increased repayments.
Reach out the to the team below, so we can ascertain your next steps.
Source – Australia Financial Review