Ross McEwan, the CEO of National Australia Bank, has made a bleak prediction for numerous Australian mortgage holders, stating that the RBA will raise the cash rate three more times. During an interview with ABC Radio National, McEwan stated, “I anticipate that we will see at least two, if not three, additional interest rate rises in the next six months.”
According to McEwan, numerous mortgage holders are expected to experience mortgage stress in the coming weeks. He advised those facing financial hardship to contact their lender as soon as possible.
NAB’s latest hardship survey found that 40% of Australians were struggling financially, with one-third attributing their stress to money. Despite this, McEwan noted that the majority of mortgage holders were coping with the interest rate rises by reducing their spending.
Conclusion
McEwan stated that when customers reach out to NAB’s hardship team, 90% of them are able to get back on track within 90 days. He also mentioned that credit card debt has not been increasing, which is a positive sign.
On March 7, the RBA Board convened for its 10th meeting to determine whether to increase rates. It is expected that the cash rate will be raised despite Treasurer Jim Chalmers’ statement that inflation had likely peaked.
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