Concerns grow as Australia braces for first rates rise in more than a decade

Australia’s biggest lender says it believes the Reserve Bank of Australia will start increasing the cash rate from June.

The official rate has been at a record low of .10 per cent since November 2020.

Commonwealth Bank economist Gareth Aird told Neil Mitchell rising inflation and wage pressures would almost certainly prompt rates to increase for the first time since 2010.

And it’s sparked concerns about the ability of some to repay loans.

“There are lots of people out there who have not yet experienced a rate rise,” he said.

“We think there are a bit over a million borrowers out there who have yet to experience a rate rise, given it’s been so long since the cash rate went up.”

Press PLAY below to hear him speak with Neil Mitchell

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