Why interest rate pain is now worse than the bad old days of 17.5%
Sep 30, 2026 •
For years we’ve heard from older generations that the current interest rate pain is nothing compared to the horror of 17.5 per cent rates in the late ‘80s and early ‘90s.
But now, as the Reserve Bank delivers its fourth hike this year, analysis shows the pain being inflicted on homeowners is comparatively worse.
So, as the official cash rate hits a 15 year high of 4.6 percent – how bad could it get?
Today, KPMG senior economist Terry Rawnsley on the chance of more interest rate hikes, the flow on effects of this latest hit, and whether we should be looking at alternatives like tax hikes, to get inflation under control.
If you enjoy 7am, the best way you can support us is by making a contribution at 7ampodcast.com.au/support.
Why interest rate pain is now worse than the bad old days of 17.5%
2060 • Sep 30, 2026
Why interest rate pain is now worse than the bad old days of 17.5%
For years we’ve heard from older generations that the current interest rate pain is nothing compared to the horror of 17.5 per cent rates in the late ‘80s and early ‘90s.
But now, as the Reserve Bank delivers its fourth hike this year, analysis shows the pain being inflicted on homeowners is comparatively worse.
So, as the official cash rate hits a 15 year high of 4.6 percent – how bad could it get?
Today, KPMG senior economist Terry Rawnsley on the chance of more interest rate hikes, the flow on effects of this latest hit, and whether we should be looking at alternatives like tax hikes, to get inflation under control.
If you enjoy 7am, the best way you can support us is by making a contribution at 7ampodcast.com.au/support.
Guest: KPMG senior economist Terry Rawnsley
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7am is a daily show from Solstice Media.
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