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Mark Bouris has told Sky News Australia that homeowners should prepare for further interest rate rises, following Tuesday’s RBA decision to hold the official cash rate in April to 3.60%.
The RBA met earlier this week to announce a pause on the rate hiking cycle. It brought an end to ten consecutive rate rises, which increased the cash rate by a record 3.50% and left many mortgage holders with significant increases in their monthly mortgage repayments.
Bouris said no matter which way you read the April statement from the RBA Governor Philip Lowe, he is “worried”.
“On one hand he’s saying ‘I wanna wait and see whether or not we’ve gone too hard’. So in other words things could fall out of the tree…i.e. the whole economy,” Bouris told Sky News.
“On the other hand he’s saying: ‘by the way, if inflation isn’t under control, which we remain concentrated on getting inflation back to 2-3 per cent, we’re going to keep putting rates up’.”
“I don’t know which way to feel. I don’t feel good about anything he said at all. This is just a pause, nothing else.”
Bouris believes that the Lowe’s choice of words indicates the rate hikes will likely return:
“If inflation doesn’t come down from 6.8%, and if wages keep pressing up as they are doing, then there’s every chance we could get two or three more rate rises.”
“This is all about data. And what concerns me most of all, is that there is no human impact analysis in relation to these interest rate rises, they’re all just about data. Data says ‘let’s put rates up’. What about the impact on people? And nobody is actually looking at that and I just wish somebody would actually go and do a proper study on this and work out what is the impact on people?
Bouris was also questioned about house prices, who offered insight on whether property prices are likely to go up or down following the recent RBA decision. Click the video above to see Mark’s take on the situation.