It'll definitely put pressure on the average house hold expenses for quite a few people.
That'll make people spend less which in turn will hit the retail market.
But rates have been at record lows for quite a while now, so the only way is up for interest rates.
So many people have leveraged themselves to the hilt on these low rates.
There'll be some defaults on mortgages and the banks will start to whinge.
I remember back in 1989 when I was getting 12% interest on a fixed term deposit ......
It could get nasty, but it will really start to hit home when the rates rise at least 1-1.5%.
Two pips on reserve banks interest rate will make people start to think tho.
