RBA blindly raises interest rates 'like an inflation madman'
“The sector as a whole has a large liquidity buffer, most households have substantial equity in their housing assets, and lending standards have in recent years been more cautious and have built a larger buffer for rate hikes,” he said this week. Bullock explains that “many borrowers have made payments well above what was requested”, with much of the mortgage debt held by wealthy households. The RBA also takes comfort in the fact that “those with very low fixed-rate loans have time to prepare themselves for higher interest rates”. Hammered household I will reiterate that as droves of unwitting borrowers have been embarrassed by the RBA’s public commitment not to raise rates until 2024 (at the earliest) noticed that their mortgage payments will more than double in the next year or two, thanks to what that would soon be at least a 1.75 percentage point rate hike in just three months. In 2020 and 2021, the RBA relentlessly advised families and bus...