Finance guru Mark Bouris has urged people suffering repeated interest rate rises to “hang in there”, predicting that rate hikes will reach a peak in the coming months – but not without plunging the country into a recession.
The Yellow Brick Founder slammed the Reserve Bank’s ongoing strategy of rate rises, saying they weren’t affecting the country’s inflation-pushing big spenders.
“A lot of people have money in deposits and they have never earned so much interest in 10 years,” Bouris told Today.
“They’re spending like drunken sailors pushing inflation numbers up big time.”
He said the system needed to be revamped with a focus on broader fiscal policy initiatives from the government, rather than the purely monetary decisions of the RBA.
For those hurting now, he admitted he didn’t have much advice – but he did have “words of encouragement”.
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“One thing is going to happen for sure, we’ll end up in probably a recession, which means the interest rate is going to go down soon,” he said.
“So hang in there, whatever you do. Hang in as long as you can.”
He said some people were predicting five rate reductions by the middle of next year.
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