Sue Tierney: Mortgage broker on rising interest rates ahead of Reserve Bank raising the Official Cash Rate

Interest rates are set to rise again, with the Reserve Bank tipped to raise the Official Cash Rate this afternoon. The central bank is releasing its latest OCR decision and Monetary Policy Statement at 2pm. It increased the OCR by 25 basis points last month after it had remained unchanged at a record low point-25 percent for 18 months. Mortgage broker Sue Tierney told Mike Hosking another rise is likely today, followed by further rises next year - but lenders should still be able to afford their loan. “When the banks assess their loans in the first place, they’re using a test rate anyway so the banks are building at a margin to ensure that clients can afford a higher interest rate anyway.” LISTEN ABOVE See omnystudio.com/listener for privacy information.