Interest rates: RBA chief economist Sarah Hunter says one thing is needed to end rate rises
Reserve Bank of Australia chief economist Sarah Hunter explains that interest rate hikes are a necessary, albeit painful, tool to combat inflation. She notes that the housing crisis is exacerbated by a lack of new home construction rather than just interest rates alone.
Why it matters
It highlights the tension between monetary policy aimed at curbing inflation and the resulting financial strain on mortgage holders during a cost-of-living crisis.
Share article For generations of Australians, the rules of home ownership were simple: work hard, save hard, borrow sensibly, and the roof over your head was yours for life.
It was a quiet promise built on stability. But right now, across the country, that promise is fracturing.
Across the country, thousands of hardworking Australians are facing a frightening reality amid relentless interest rate hikes in the middle of a cost of living crisis. Nine
The real issue isn’t just interest rates though, it’s that Australia is failing to build enough homes.
Across the country, thousands of prudent, hard-working Australians who thought they did everything right are facing a frightening reality: relentless interest rate hikes, in the middle of a cost of living crisis, mean they’re closer than ever to losing the roof over their heads.
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