In this article:
Mark Bouris has warned Australians that they’re “in for a very bumpy ride” over the coming 12 months, following this week’s record setting 12th rate increase in just 14 months.
Speaking to Sky News, Bouris shared his genuine shock at the latest interest rate increase, saying it was “totally unexpected.”
“If you’d have asked anybody where they thought the rates were going to go a year ago or even six months ago, they never would have said 4.1%.”
Bouris told Sky News that this latest rate hike has “spooked” him and is concerned about the RBA Governor’s decision making: “What he’s done is gone against what I consider to be the consensus opinion in relation to what interest rates should be doing.”
“Therefore, he’s shown that he is prepared, willing and able to do whatever he wants outside of what everybody’s expecting.”
“I’m calling this for what it is. It’s wrong. It’s badly timed and it’s wrong.”
Bouris believes one thing missing from the RBA and the Governor right now is the lack of communication about how long this rate hiking cycle will last.
“He was willing to talk about this in 2022, but we haven’t heard him talk about this: How long would these high interest rates going to last for? Get up and tell us: how long are we going to have these high rates?”
“We’ve got to give people a bit of an idea. Borrowers need to know, ‘how long do I have to hunker down for in this environment? And how long am I going to have the pressure on me?’”
“At least give us some idea or maybe sit there with the treasurer and the Prime Minister and give us a big address to the nation…and give us some insights.”
RBA Tells borrowers to be prepared for further rate rises
With the cash rate now at an 11-year-high of 4.1%, Bouris also joined Karl Stefanovic on Channel Nine’s Today Show, to discuss the impact of yet another increase to interest rates on mortgage holders.
“I am concerned we are going to get squeezed very, very hard,” Bouris told Today.
“I definitely think we are going to head towards a recession, a technical recession at least.”
“I was filthy because there is absolutely no need, from my point of view, and from the point of view of a lot of economists I’ve been talking to, to put the rates up again,” he said.
“And in the very last paragraph of (the RBA Governor’s) statement, he’s saying be prepared for another rate rise.”
“And this is all off the back of the inflation number we got for the past 12 months, but if you look at the inflation number for April this year and compare it to just that one month, to April ’22, we are exactly half, so that tells me we are on the way down, so why not wait and see what happens?”
Watch Mark’s appearances by clicking the videos above.