Reserve Bank governor Glenn Stevens has warned home buyers and home owners that interest rates will begin to rise as the economy starts to strengthen.
Appearing before the House of Representatives Economics Committee in Sydney on Friday, Stevens was asked at what point would the central bank begin raising interest rates. He responded by claiming the current rate of three percent is an “emergency measure” and will be withdrawn once the emergency has passed.
“I think people should keep in mind that interest rates will be higher,” he said.
“I don’t offer financial advice to people, but it would be prudent to be confident that you can absorb increases in interest rates when you’re taking out a loan,” he added.
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