, the impact of rate rises is less about when they start and more about how high the cash rate needs to go in the next few years.Jarden’s chief economist Carlos Cacho, for example, now expects rates to hit 2 per cent next year, up from 1.5 per cent.
Thieliant describes households, which hold twice as much debt as businesses, as the economy’s weakest link. Thieliant sees reason to be optimistic. First, he says the structure of variable loans means households will be provided with a cushion as banks lower principal repayments.
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