Assistant Treasurer Stephen Jones under pressure for repeated comments on the RBA

A call for the Reserve Bank to end interest rate hikes has resulted in a demand for a key minister to hand in his resignation.

Anthony Albanese is facing calls to sack his assistant treasurer after he again declared he was hopeful the Reserve Bank would not keep hiking interest rates.

One-fifth of mortgage holders who signed up for a home loan during the pandemic period of ultra-low interest rates are to have their fixed rates roll over in the coming months.

Fresh KPMG analysis suggests the 800,000 homeowners could be hit with a $16,500 repayment cliff by the end of the year.

Assistant Treasurer Stephen Jones said he had concerns for those Australians on fixed rates who had yet to feel the brunt of the interest rate rises.

“Which is why we think there’s already a fair bit of pressure in the system,” he told the ABC.

“We’re hoping that we don’t see further interest rate increases.”

Assistant Treasurer Stephen Jones is being targeted for his comments. Picture: NCA NewsWire / Gary Ramage

It’s not the first time Mr Jones has expressed his desire for the RBA to near the end of its rate hikes.

Last week, the Labor frontbencher found himself in hot water after he signalled the nine consecutive rate rises already handed down should be enough to cool inflation.

Opposition frontbencher Simon Birmingham said Mr Jones’ repeated interventions warranted the call for his resignation.

“Treasurer Chalmers and Prime Minister Albanese need to pull Stephen Jones into line or push him out of the ministry if he's going to continue to speak out of turn and undermine the independent Reserve Bank,” he told Sky News.

“One of the fundamental principles that pretty much every treasurer and every Treasury or finance ministers have stuck to is to support the independence of the Reserve Bank in their role.

“Stephen Jones doesn’t seem to.”

RBA governor Philip Lowe will face a double grilling later this week. Picture: NCA NewsWire / Gary Ramage

RBA governor Philip Lowe will this week face two parliamentary committees where he will be grilled about the bank’s actions.

The central bank has aggressively hiked rates at its past nine meetings, taking the cash rate to a decade high of 3.33 per cent.

At its last meeting, it flagged further interest rates in the coming months as it continues to target skyrocketing inflation, which hit 7.8 per cent in the year to December.

But experts remain concerned any future rate rises could punch a $20bn hole in the economy.

KPMG chief economist Brendan Rynne warned that the economy could contract further than the RBA had forecast.

“I think it’s going to be touch and go (on if we enter a recession),” Dr Rynne told Sky News.

“The reality is that it’s going to feel like a very slow economy.”

Originally published as Assistant Treasurer Stephen Jones under pressure for repeated comments on the RBA