Home loan borrowers could face a $90 hike to their monthly mortgage payment, according to a news.com.au report.
The RBA recently hinted that a rate rise could be on the horizon as it grapples with “managing a fairly robust upswing” fuelled by the resources sector.
The announcement has analysts predicting that banks will take the opportunity to push mortgage rates over and above RBA movements.
Should the RBA move rates up 25 basis points, it is predicted banks will lift rates up to 0.45 percentage points – adding another $90 a month to repayments on a $300,000 mortgage.
Banks remain under pressure from high funding costs and analysts believe they will be looking to pass some of that cost down to customers.
HSBC chief economist Paul Bloxham, who recently left the RBA where he was head of its financial conditions section, distributed a note to clients indicating the bank would lift rates 25 basis points before Christmas and that there would be four more increases bringing the official cash rate to 5.75% by the end of next year, The Australian reported.
Another rate rise could force the Australian dollar even higher. Yesterday the dollar pushed through the barrier of US95c for the first time in more than two years.
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