Australian mortgage holders face possible November rate rise after RBA warning

The Australian share market edged lower after Reserve Bank deputy governor Andrew Hauser warned that the inflation outlook was materially worse than forecast. His remarks strengthened expectations that the RBA could raise rates at its 3 November meeting, adding pressure to mortgage holders and businesses as the central bank seeks to bring inflation down.

At lunchtime on Wednesday, the S&P/ASX 200 was down 0.19 per cent at 8,800.5, while the All Ordinaries fell 0.21 per cent to 8,925.7. Economist David Bassanese said markets’ 40 per cent estimate of a November rate rise was too low. Loan Market reported refinancing reached 57 per cent of its mortgage volume in September, a yearly record, as borrowers sought better deals; the Australian dollar also rose to a three-week high of 70.21 US cents.