Top economist shares interest rate prediction every Aussie with a mortgage ... trends now
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A finance expert has predicted the Reserve Bank of Australia will hold rates during their May decision, but there could be more pain for homeowners on the way.
AMP Capital's head of investment strategy and chief economist Shane Oliver said the Reserve Bank will hold firm on Tuesday's cash rate decision.
While predicting the central bank would keep it at 4.35 per cent, Dr Oliver didn't rule out the possibility of a hike sometime down the line.
Economists have warned rates could be increased even further throughout the year as the economy continues to grow and keeps inflation above predicted levels.
Economists are predicting the RBA will hold the cash rate during Tuesday's rate decision but haven't ruled out the chance they could increase the rate (stock image)
Dr Oliver warned the RBA could take a 'tightening bias' which would keep Aussies from purchasing a house or other big buys.
According to Dr Oliver, a tightening bias hits the pockets of everyday Aussies, even without a mortgage or another large loan.
