‘Surprise’ economic surge sparks brutal interest rates warning

Data released Wednesday has sparked some analysts to bring their rate hike expectations forward, warning RBA Governor Michele Bullock is being backed into a corner by fresh figures. Picture: NewsWire / John Appleyard A shock surge in national growth has backed the Reserve Bank into a corner – that top financial analysts now warn will see millions of homeowners hit with a rate hike within weeks. Within hours of fresh national accounts data on Wednesday, macro research firm TD Securities officially changed its forecast, warning the RBA will deliver an immediate 25-basis-point interest rate hike at its September meeting. Upside risks to domestic demand flagged. Source: TD Securities Australia’s largest mortgage lender, Commonwealth Bank, also sounded the alarm – confirming it expects the RBA to hit homeowners with a rate hike in November, while warning a surprise September increase remains a very real threat. The September move would push the official cash rate up to 4.60 per cent, adding $92 a month to a typical $600,000 mortgage – taking the total repayment increase this year to $364 a month, according to Canstar calculations. It comes as Australian Bureau of Statistics data found g...