The RBA has increased interest rates at its past eight meetings. It is expected to lift them again on Tuesday, with a super-sized rate rise on the agenda.
The Reserve Bank could use its first meeting of the year to deliver a super-sized 0.4 percentage point lift in official interest rates with the nation’s biggest home lender predicting the RBA’s aggressive tightening of monetary policy is now starting to bite across the economy.
Gareth Aird, the Commonwealth Bank’s head of Australian economics, said he expects the RBA to inflict another quarter percentage point rate increase on borrowers, but there is a strong chance it could go further. He said the breadth and size of the lift in inflation through the December quarter meant the RBA was likely to look at a 0.4 percentage point increase.
, which expects another quarter percentage point lift in rates on Tuesday, believes the economy is holding up better than expected to previous rate increases. This week, the government will introduce the legislation for its $10 billion Housing Australia Future Fund that will be used to provide ongoing funding for new social and affordable housing.
But in its submission to Treasurer Jim Chalmers for the May budget, Homelessness Australia said the government had to go further than the future fund.It wants the creation of a $2 billion “rapid re-housing fund” to deal with immediate housing issues, an expansion of the future fund to support the construction of 25,000 social homes a year and a 50 per cent increase in Commonwealth rent assistance.
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