Q+A: RBA holds, but this economist says another hike is still coming

The Reserve Bank has left interest rates unchanged at 4.35 per cent, but the message from Governor Michele Bullock was hardly reassuring for borrowers. Despite softer inflation and a cooling housing market, the RBA is still warning that rates could need to rise again.

Sean Aylmer speaks with AMP Deputy Chief Economist Diana Mousina about why the decision was a “hawkish hold”, what could trigger another rate rise, why the RBA isn’t particularly worried about falling house prices, and the productivity problem it can’t fix.

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