House prices, profits and politics collide in interest rate battlefield
An emergency RBA funding scheme that had contributed to lower interest rates is set to end, raising questions about the housing market, credit availability and an election outcome.
More speculation is swirling that record-low interest rates are not likely to last. Photo: Shutterstock (Image source: Shutterstock.com)
With a Federal election looming and the first signs of pressure on interest rates appearing, the government may soon be locking horns with banks and the Reserve Bank of Australia to keep lending rates at current historic lows.
A blowout in inflation forecasts is a major threat to the Federal Government’s budget outlook, especially if it prompts the RBA to raise interest rates much earlier than its current expectation of 2024 at the earliest.
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