According to a report by JP Morgan, interest rate hikes are likely to lead to a massive cost of living increase.
A report by the company has suggested RBA rate moves over the last year, along with surging prices for produce due to Queensland's floods and hikes in electricity and fuel could see living costs skyrocket for Australian mortgage holders.
While the Reserve Bank is expected to keep rates on hold until the latter half of the year, the report has predicted rate rises are "far from over".
Over 90% of Australian home owners hold a variable rate mortgage, and JPMorgan economist Helen Kevans told The Australian that rate rises will have a greater impact on the cost of living for the average Australian.
“The high level of household debt relative to income has raised the vulnerability of Australians to rising interest rates compared to a decade ago,” Kevans said.
A report by the company has suggested RBA rate moves over the last year, along with surging prices for produce due to Queensland's floods and hikes in electricity and fuel could see living costs skyrocket for Australian mortgage holders.
While the Reserve Bank is expected to keep rates on hold until the latter half of the year, the report has predicted rate rises are "far from over".
Over 90% of Australian home owners hold a variable rate mortgage, and JPMorgan economist Helen Kevans told The Australian that rate rises will have a greater impact on the cost of living for the average Australian.
“The high level of household debt relative to income has raised the vulnerability of Australians to rising interest rates compared to a decade ago,” Kevans said.
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