One more rate rise likely, warn economists

By Your Mortgage

The Reserve Bank Board met again this week to decide interest rate settings, and while the Reserve Bank left rates as is, some are warning of more rate hikes to come this year.

Savanth Sebastian, Equities Economist with CommSec, said that after two rapid-fire rate hikes in February and March, the RBA will allow the new rate settings to have an impact on the economy. 

However, he warns that ongoing inflationary pressure means that one more rate hike is “a possibility”.
 
“While credit markets remain tight, the Reserve Bank has been prepared to add further liquidity and have taken step to try accommodating the increased demand for funds,” Sebastian said.