said the bank was starting to see underlying pressures in the economy that pointed to sustained inflation, including consumers looking for wage rises and businesses responding to those asks.
Grattan Institute economist Brendan Coates said people who bought recently will be hit hardest by interest rate rises. Since then, household debt has ballooned. In February the average loan for owner-occupiers was $760,000 in NSW, $624,500 in Victoria, and $524,000 in Queensland. But while there were those safeguards in the system, Ms Masters said there was still uncertainty around how people would react.
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rachelclun There's going to be a tsunami of Home Mortgage defaults.