Leading economist makes grim interest rate prediction

One economist  says a further interest rate rise is now likely after fresh inflation numbers came to light on Wednesday.

There could be more bad news on the way for mortgage holders as a result of the numbers, which highlighted the Reserve Bank of Australia’s struggles to curb inflation.

AMP chief economist Dr. Shane Oliver told Heidi Murphy on 3AW Drive while he is bracing for a rate rise, he’s not convinced it would be the right call.

Click PLAY to hear more about today’s inflation figures + why a rate rise is looking likely 

“I think (a rate rise) is now more likely,” he said on 3AW.

“The risk has gone up dramatically and the Reserve Bank will have little tolerance…but I still think it’ll be a mistake.”