CBA warns of tougher times ahead as rates rise and outlook darkens
Interest rates are climbing again but it is Commonwealth Bank’s sharply downgraded economic outlook, pointing to higher inflation, rising unemployment and slower growth, that is raising fresh concerns for borrowers and investors.
Inflation could rise "well beyond 5 per cent" if the oil price spikes in a prolonged Middle East war. (Image source: Olga Kashubin/Shutterstock.com)
The majority of borrowers awoke Friday (27 March) to bigger mortgage repayments.
Westpac lifted rates on Tuesday (31 March), while the other big four banks have lifted variable interest rates by 0.25 per cent.
Australia’s biggest bank, Commonwealth Bank (CBA), went further by upping its fixed term rate by 0.30 per cent, above the Reserve Bank of Australia’s 25 basis point hike on 17 March
.The banks are forecasting more interest rate pain to c…
