Business Columnist Terry McCrann says Australians are “punting in the dark” when it comes to where interest rates will go in the near future.
It comes after the RBA governor announced the end of a pandemic era policy, pinning bond rates to the cash rate target until 2024.
“The bottom line is the Reserve Bank has recognised the idea that it will keep rates at zero all the way to 2024 has become totally problematic,” Mr McCrann told Sky News host Peta Credlin.
“You say maybe we’ll get a rate rise in 2023; we might even get a rate rise in 2022.
“We’re really punting in the dark in terms of where rates will go because it’s not only what happens in Australia, it’s what happens in America most importantly.
“And the Fed … is meeting now and it comes out with its decision tomorrow morning early our time, so that will have a big impact too on the global interest rate environment.
“I think everyone out there should get ready for turmoil at least and uncertainty on when and how quickly rates rise.”