Sally Tindall

We're fixing...

for 15 to 30 years is incredibly popular, or even over in New Zealand where the majority of borrowers are on fixed loans.

At the moment, we estimate that there's around 38% of borrowers, home loan borrowers, are on fixed rate loans and the rest are on variable and feeling each rate hike

as they roll in.

The second reason would be that we are, in some cases, some of us who bought recently, potentially with small deposits, took on large loans compared to our incomes, we're up to our eyeballs in debt.

So that could mean that we need fewer rate hikes to get the inflation problem in hand.

The RBA has alluded to this in what they've said in speeches and things like that.

Well, I think that the RBA and Governor Lowe have been doing a pretty good job in what has been unprecedented and in many cases, very difficult circumstances.

I mean, no one really knew what was around the corner when COVID first hit.

Yes, the RBA cut the cash rate significantly.

And as Governor Lowe said, took out perhaps a little bit too much insurance to protect

people from what was ahead when people were staring down the likelihood of significant health concerns across the nation, but also significant job losses.

And that didn't materialise.

And so people are now looking at the RBA and Governor Lowe in particular and horrified by the rapid rise to the cash rate.

But we really need to get some perspective here.

I know

know that borrowers don't like rising rates.

That's fair enough.

But the cash rate was at emergency setting levels at 0.1%.

It couldn't stay there for much longer.