Good morning. It was another long night for Sydney residents, with more than 32,000 people under flood evacuation orders across New South Wales and authorities grappling with deteriorating conditions. The Reserve Bank is predicted to lift the official interest rate. And a gunman is on the run following a Fourth of July parade shooting in Chicago.
Homeowners have been warned to brace for a double whammy of interest rate rises on Tuesday and again in August, with total monthly repayments expected to be driven at least $333 higher on the latest predictions. Markets and economists are tipping a 50 basis point increase when the Reserve Bank meets on Tuesday, lifting the official cash rate from 0.85% to 1.35%, with further rises expected throughout 2022. The higher interest rates may not slow inflation and the Reserve Bank of Australia’s decision to raise the cash rate may backfire and cause economic instability, writes Satyajit Das.
