Cash-strapped mortgage holders are being warned that the federal government’s fuel relief measure is unlikely to spare them cost-of-living pain and further interest rate hikes.
According to Westpac chief economist Luci Ellis – who spent more than 30 years working for the RBA – cutting the fuel excise won’t stop runaway inflation, which will ultimately lead to higher interest rates.
She grimly forecasts mortgage holders will be hit with another three interest rate hikes in May, June and August.