Shock inflation rise means rate hike now a near-certainty
Households, particularly those with larger mortgages, should brace themselves for another hit to the pocket after an unexpectedly high inflation figure massively boosted the odds of an imminent interest rate hike.
Any increase in interest rates would have a direct and immediate impact on household budgets, particularly for borrowers with larger mortgages. (Image source: Hryshchyshen Serhii/Shutterstock.com)
Inflation has reignited and borrowers look set to be the scapegoat as the Reserve Bank of Australia (RBA) will look to pour cold water on consumer spending.
Despite a cost of living crisis, Australians have still managed to push core inflation well beyond market expectations to 3.8 per cent to the end of December, up from 3.4 per cent just a month prior.
On a month-on-month basis, inflation topped 1 per cent against market expectations of 0.7 p…
