Borrowers will need to brace themselves for a raft of rate rises next year as the economy strengthens according to a former senior Reserve Bank economist. Paul Bloxham, the newly appointed HSBC chief economist for Australia and New Zealand has predicted the RBA will bump up the official cash rate by 125 basis points by the end of next year. Bloxham should know – prior to his new appointment on Monday, he was a senior Reserve Bank economist and had worked for the central bank for 12 years.
Bloxham predictions match that of a recent Goldman Sachs report predicting rates will rise 100 basis points in the next year, with hikes possibly starting as soon as next month.
» Interest rate bombshell – Business Spectator, 21st September 2010.
» Australia May Resume Raising Interest Rates in November, Goldman Says – 3rd September 2010.
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