The ‘profile’ of those most likely to be hardest hit by interest rates hike
Young families who recently took out mortgages are most likely to be those hardest hit by the latest interest rates hike, a former economic adviser to Julia Gillard says.
Concerns are growing about cost-of-living pressures after the Reserve Bank of Australia lifted the cash rate to 1.85 per cent.
Speaking on 3AW, Neil Mitchell asked Stephen Koukoulas, Managing Director of Market Economics, for the “profile” of those most likely to be most impacted by the change.
“It is the young family who probably took out the mortgage in the last 18 months, or two years,” he said.
“They borrowed when interest rates were at those record lows, when house prices were at those record highs.
“Almost by definition they had to borrow a lot of money to get their foot in the door of the property market.”
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