Why the worst of Australia’s mortgage pain is still coming
Investors have embraced the bull case that inflation has peaked, and interest rates are close. But that doesn’t mean the pain facing consumers is done.
On the face of it, there’s nothing in higher-than-expected inflation data that should halt the rally that has helped the ASX 200 leap 7.5 per cent since the start of the year and put the benchmark index within touching distance of a record high.
Yes, the CPI numbers shocked economists; the headline reading of 7.8 per cent was the highest since 1990 and the trimmed mean measure, which leapt to 6.9 per cent, came in well above the Reserve Bank’s forecast. And yes, the data has all but cemented a 0.25 per cent rate hike when the RBA meets in a couple of weeks.
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James Thomson is senior Chanticleer columnist based in Melbourne. He was the Companies editor and editor of BRW Magazine. Connect with James on Twitter. Email James at j.thomson@afr.com
