Interest rates set to rise in June - a podcast by The Age and Sydney Morning Herald

Mortgage holders be warned. Financial markets are betting the Reserve Bank will lift interest rates in June.

A statement released this week by Reserve Bank governor Phil Lowe has caused a shift in expectations about future rate hikes. It noted Australia’s falling jobless rate, rising inflation pressures and large wage increases in some sectors of the economy.Crucially, Lowe dropped a reference to the bank’s intention to be ‘patient’ when considering future rate increases.

Most analysts now think the board will lift rates at its first meeting after the May federal election on June 7th. But how high will rates go?Today on Please Explain, senior economics correspondent Shane Wright joins Jess Irvine to discuss.

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