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Clumsy RBA Messaging Raises Risks For Indebted Australian Households
"Global inflation remains very high," the RBA said Tuesday. "It will be some time before inflation is back to target rates."
The blunt assessment came alongside a 10th consecutive rate hike in Australia. The move was expected.
Apparently, mounting recession concerns and household debt worries are now tipping the scales in favor of a pause, possibly as soon as next month. Although the bank still expects "further tightening will be needed to ensure inflation returns to target," the new statement
From an AMP Capital report:
Australia has the highest exposure to mortgages vulnerable to rate changes across comparable global countries… with 93% of loans vulnerable to rising rates (compared to 55% in New Zealand, 42% in UK, 24% in Canada and 1% in US).