Canstar’s analysis also points to speed in lender pass-through after the previous move, with most lenders passing on the full increase within two weeks.
“Borrowers across the country are bracing for further mortgage pain, with the governor confirming the discussion around another cash rate hike will be a live one,” said Sally Tindall, data insights director at Canstar.com.au. “Inflation is sitting well beyond the RBA’s target of 2.5%, with rising petrol prices likely to push it even higher, at least in the short term. The Board won’t hesitate to ratchet up the cash rate if it thinks the economy and the jobs market can withstand the extra pressure.
Tindall, however, pointed out that a rate hike is “not yet a done deal”, saying tha the central bank “could decide to wait for a clearer read on the overarching impact of the war in the Middle East on the Australian economy before it makes a move.”
For White, this approach “would prioritise the financial and emotional wellbeing of Australians facing an uncertain immediate future.”
“We would urge the RBA to take a cautious approach and resist increasing the cash rate until the global situation becomes more stable,” he said.