Interest rate rises are designed to hurt. But how much is too much?
5/7/202630 min
When RBA governor Michele Bullock announced the third consecutive interest rate rise this week, she acknowledged the real-world suffering that would result.
But just how much pain is too much? And is there a better way?
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First 90 secondsSpeaker 00:00
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Peter Martin· Host0:36
When Reserve Bank Governor Michele Bullock increased interest rates this week for the third time this year and the second time since the explosion in fuel prices, she said she'd done it- To give ourselves space now to sit and see what happens She needed space to stand back and assess whether to push up interest rates further if inflation begins to get a life of its own and really take off, or to cut rates if it looks as if the oil crisis will push us into a recession. Her thinking- Increase now and then give yourself space She reckons we can cope with this increase. For some of us, it'll cost an extra $100 a month on top of the extra $100 a month in February and the extra 100 in March and the extra in fuel prices.