Economist reacts to ‘fairly aggressive’ move from the Reserve Bank

Mortgage holders will be forced to tighten their purse strings even further after a third consecutive rate hike was announced.

The Reserve Bank has raised the official cash rate by half a per cent to 1.35 per cent.

It’ll add more than $200 to monthly mortgage repayments on an $800,000 loan.

“These are fairly aggressive moves by the RBA,” AMP’s chief economist, Shane Oliver, told 3AW Drive.

“In fact, we’ve never seen two back-to-back hikes of .5 per cent.

“This is now the fastest tightening cycle we’ve seen since way in 1994, when household debt levels were a lot lower.

“I think it also underlines the extent of the inflation problem the Reserve Bank faces.”

Press PLAY below to hear Shane Oliver’s reaction

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