WENDELL HUSSEY | Cadet | CONTACT
A leading economist from South Betoota Polytechnic has today revealed to The Advocate what the fallout will be if the Reserve Bank of Australia (RBA) raises the current interest rate.
Professor Alan Koch explained that roughly 95% of households around the country are going ‘to be fucked’ if the RBA bites the bullet.
“As you can see in the map there, everyone outside of Inner Melbourne, Inner Brisbane and Syndey’s North Shore and Eastern Suburbs is going to up the creek without a paddle if interests rates go up,” he said.
“Obviously people in the outer regions of the city are going to be totally and completely fucked.”
This comes after more conservative economists revealed that millions of Australians are already under financial stress (having less than 5% of income spare after living expenses are accounted for), with plenty of those understandably under mortgage stress as well.
Concerns have been raised that if interest rates rise from their record lows for the first time in 12 years, then millions more Aussies will be under pressure to pay for the roof over their head.
It’s believed the banks are keen to jack up rates again, despite ignoring the RBA’s lowerings in the past few years.
However, while the move could cause financial ruin for plenty of working-class Australians, the RBA is under pressure to move rates up to try and prevent inflation.
It’s not known how the raising of rates will bring down the cost of things like petrol that are under pressure from external factors like war and certain countries controlling the flow of oil.
However, despite successive federal governments doing nothing to curb the rampantly inflating housing bubble, it’s believed the RBA is hoping it can bring the price of a basic human right down, by forcing those who haven’t cashed in from property to sell and rent for the rest of their life.
Something which Professor Koch says is a win-win for multiple property owners.
“That’s the way these things go. Enjoy your Australian dream folks.”