Repayments on a $750,000 mortgage would rise by $199 a month from June if employment and wages data prompt the Reserve Bank of Australia to increase interest rates faster to rein in growing inflationary pressures.
The average borrower with a $750,000, 25-year owner-occupier loan would pay $199 a month more if the RBA increases the cash rate by 0.5 percentage points, according to loan aggregator RateCity.Westpac chief economist Bill Evans is tipping the RBA will raise the cash rate to 0.75 per cent, which for the same borrower would lift their monthly repayment by $159, or almost $2000 a year.
Inflation figures for the March quarter showed CPI inflation spiked to a surprise 5.1 per cent over the year, and 2.1 per cent over the quarter, while trimmed mean inflation – the RBA’s preferred measure that trims away large price changes – lifted to 3.7 per cent, well above the target band. That sparked concern in the business community about the potential for a price-wages spiral, with many businesses left with little choice but to pass on any additional wages cost on to consumers through higher prices.
Source: Loan Digest (loandigest.net)
Der...Josh Frydenberg worst treasurer in Australia's political history 1 trillion in debt , eye popping inflation. Petrol prices through the roof , cost of living rising, wages stagnating, record underemployment , over 3 million on the poverty line .Vote them out! Vote ALP