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The Reserve Bank has lifted the official cash rate 25 basis points for the third consecutive month, taking the rate to 3.75 per cent.
While a December rate rise was always likely, the bulk of brokers are unhappy with the Reserve Bank’s decision.
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According to Mortgage Business’ latest straw poll, 85.8 per cent of brokers said the RBA should not lift the official cash rate.
Of the 635 respondents, only 12.8 per cent said the Reserve Bank should lift rates.
Intelligent Finance’s managing director Justin Doobov told Mortgage Business that the rate rise was premature as there are still uncertainties in the market.
“I think the RBA has acted too hastily in lifting rates again,” Mr Doobov said.
“It would be prudent for the Reserve Bank to stop and take stock of what is happening in the economic environment.”
“By increasing rates again, it will encourage people to act rashly and they won’t make the best decision when it comes to their future. Some people will be encouraged to put their house on the market and this may not be the best option for them,” he said.
Frank Durso of Accum Financial Solutions said he understood why the Reserve Bank lifted rates and believed the hike was inevitable.
“I think further rate rises won’t impact too many people. There are concerns for first home buyers, but at the end of the day, rates are historically low and this needs to be put in perspective. Our economy is faring well, so it is prudent for the RBA to raise rates,” Mr Durso told Mortgage Business.
