{"id":2433,"date":"2022-04-27T01:19:53","date_gmt":"2022-04-27T01:19:53","guid":{"rendered":"https:\/\/royabhishek.in\/urbanbuyer\/my-view-on-rising-interest-rates\/"},"modified":"2022-04-27T01:19:53","modified_gmt":"2022-04-27T01:19:53","slug":"my-view-on-rising-interest-rates","status":"publish","type":"post","link":"https:\/\/royabhishek.in\/urbanbuyer\/my-view-on-rising-interest-rates\/","title":{"rendered":"My view on rising interest rates"},"content":{"rendered":"

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What happens if interest rates rise, and how does one strategize…?<\/strong><\/p>\n

\"Interest\"In terms of the expectations of some of Australia\u2019s most respected interest rate commentators, they generally see higher interest rates moving forward, but not quite as high as the market is currently pricing.<\/p>\n

For example last week Westpac\u2019s Bill Evans revised the bank’s projections to include five rate hikes between June to December this year, a cash rate at 1.25 per cent by years end, and a peak rate of 2.0 per cent for this rate cycle (the RBA cash rate is currently at 0.10 per cent).<\/p>\n

Meanwhile, CBA and UBS don\u2019t believe the cash rate will rise so aggressively, suggesting the terminal level would be closer to around 1.25 or 1.5 per cent.<\/p>\n

With this backdrop, I thought I\u2019d run some numbers on what happens if interest rates rise by 1 or 2 per cent from their current levels\u2026<\/p>\n

Existing loan repayments increase<\/span><\/h2>\n

\"Loans\"For a 1.0 million dollar home loan:<\/p>\n