Australians warned interest rate hike may be higher than expected
The Reserve Bank could lift interest rates even higher than tipped tomorrow.
It comes after Federal Treasurer Jim Chalmers warned inflation was worse than the March budget forecast.
Managing director of Market Economics, Stephen Koukoulas, thinks the official cash rate will rise by 0.4 per cent tomorrow, bringing the rate to 0.75 per cent.
“They’re doing it because the economy is doing well. Unemployment is below four per cent — a 50 year low — and inflation is really lifting off,” he told Ross and Russel.
“We need to normalise interest rates and that means putting them up.”
Mr Koukoulas says that won’t be the end of it, either.
“After we see the rate hike tomorrow they’re going to probably signal that we need to do more.
‘They’re expecting these official interest rates to hit three per cent by the second half of next year.”
Press PLAY below to hear what Mr Koukoulas thinks Australians can expect