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Don’t lift rates: brokerage

A rate hike next month will only serve to hurt Australians, Loan Market Group chief operating officer Dean Rushton has said.

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According to Mr Rushton, the three rate rises implemented earlier in the year by the RBA have already had a major impact on economic activity, with some people already struggling with the cost of every day goods as well as services such as power and water.

“We are hoping the RBA sees reason and maintains the cash rate at 4.5 per cent but they may have their eyes on a different economic basket to the one affecting most Australian home owners and small businesses,” Mr Rushton said.

Mr Rushton said the home finance sector in particular has been struggling for many months as a result of not only interest rate increases but the threat of further RBA rate rises.

“Our sector would benefit from the RBA leaving the official rate at its current level until at least early next year and I strongly believe home owners need some respite as Christmas approaches,” he said.

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