First home buyers, many of them clustered in the outer suburbs of Australian cities, are most likely to struggle under what could prove to be an onslaught of interest rate rises, analysts say.
The Reserve Bank again surprised the market on Tuesday, lifting its official cash rate by 50 basis points to 0.85% and signalling more increases to come. The “shock and awe” rise – as one economist dubbed it – was the largest since February 2000.
