Theo Chambers, CEO of Sydney mortgage brokerage Shore Financial, said today,
“The market was expecting a 0.25 basis point increase so today’s announcement comes as little surprise to most. The expected outcome is that people’s borrowing power will continue to be reduced. Consumer spending is still quite high at the moment, which is keeping inflation high, recently reaching the 7% mark in Australia.
As for other likely outcomes, unemployment is now forecast to start increasing as rates continue to rise, and could reach 4.5% in 2023. This can be put down to the fact that once consumer spending starts decreasing and inflation subsequently starts decreasing, the global economy will probably retract a little bit. As a result, businesses will feel less revenue and profits will fall, leaving many in a situation where they may have no choice but to lay off some staff as they go into cost-cutting mode.”