Homeowners should be prepared for more interest rate increases to come. Photo: ANU
Homeowners should be prepared for more interest rate increases to come. Photo: ANU Homeowners hoping for respite on interest rates have little to look forward to, with the Reserve Bank of Australia announcing an increase of 25 basis points to the official cash rate today. An increase to interest rates is in line with the experts on the RBA Shadow Board at The Australian National University (ANU), which has voted in favour of a sixth successive rise in interest rates for October. Chair of ANU RBA Shadow Board Dr Timo Henckel said the further monetary tightening is required to reign in Australia's inflation rate amidst risks to the global economy and falling consumer confidence. "The RBA Shadow Board strongly advocates in favour of further interest rate increases," Dr Henckel said. In its latest vote, the ANU RBA Shadow Board said an increase of 50 basis points was the most appropriate setting - 25 basis points more than the RBA's official decision today. According to the ANU experts, this won't be the last time interest rates rise in the foreseeable future.
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