15-02-2023, 08:12 AM
Jonathan Pearlman
For The Straits Times
UPDATED 8 HOURS AGO
......
the Reserve Bank of Australia (RBA) – is now coming under fierce attack, including calls from MPs for the sacking of its head, Dr Philip Lowe, over a series of apparent missteps.
The bank has been blamed for being too slow to act as inflation began rising in the country, and for then overcompensating with massive interest rate hikes that could push the economy into a recession.
Since May 2022, the bank has lifted interest rates from a record low of 0.1 per cent to 3.35 per cent – the quickest rise in decades.
In particular, Dr Lowe – the mild-mannered governor of the bank – has ignited intense public criticism over guidance during the Covid-19-related economic slowdown that interest rates would remain at record lows until 2024.
This prompted households to take on heavy debt, but many are now facing massive hikes in their repayments due to the soaring interest rates.
......
Soaring property prices have left Australia with one of the world’s highest levels of household debt, but many homeowners have become accustomed to low interest rates.
Between 2010 and 2022, interest rates did not rise, meaning many property owners – until last year – had never experienced increases in their mortgage repayments.
https://www.straitstimes.com/asia/austra...ic-worries
For The Straits Times
UPDATED 8 HOURS AGO
......
the Reserve Bank of Australia (RBA) – is now coming under fierce attack, including calls from MPs for the sacking of its head, Dr Philip Lowe, over a series of apparent missteps.
The bank has been blamed for being too slow to act as inflation began rising in the country, and for then overcompensating with massive interest rate hikes that could push the economy into a recession.
Since May 2022, the bank has lifted interest rates from a record low of 0.1 per cent to 3.35 per cent – the quickest rise in decades.
In particular, Dr Lowe – the mild-mannered governor of the bank – has ignited intense public criticism over guidance during the Covid-19-related economic slowdown that interest rates would remain at record lows until 2024.
This prompted households to take on heavy debt, but many are now facing massive hikes in their repayments due to the soaring interest rates.
......
Soaring property prices have left Australia with one of the world’s highest levels of household debt, but many homeowners have become accustomed to low interest rates.
Between 2010 and 2022, interest rates did not rise, meaning many property owners – until last year – had never experienced increases in their mortgage repayments.
https://www.straitstimes.com/asia/austra...ic-worries