Mortgage holders should brace for potential interest rate increases, as minutes from the latest Reserve Bank of Australia (RBA) meeting reveal the board’s readiness to act if inflation surges.
The June 17-18 meeting highlighted the ongoing challenge of controlling inflation, with RBA governor Michele Bullock and the board acknowledging that if inflation expectations were to rise materially from current levels, it could require significantly higher interest rates to bring inflation back to target.
Days after the monetary policy meeting, inflation actually rose, with the Australian Bureau of Statistics (ABS) reporting that the monthly consumer price index rose to 4% in the year to May, up from 3.6% in April.
You may read the whole article here:
https://bit.ly/45TZxpB
