Yesterday it was the Real Estate Treasurer. Today it is the PM, via AAP:
Malcolm Turnbull said the Reserve Bank is sending a prudent signal when it talks about the potential for higher interest rates.
…”They are not saying they are going to do that tomorrow,” the prime minister assured Neil Mitchell on radio 3AW on Thursday.
“But I think they are sending a signal, which is probably prudent, which is to say … rates are more likely to go up than go down.”
And from later:
Malcolm Turnbull has warned households to prepare for potential higher interest rates, urging prudent management of finances.
The Prime Minister told the Melbourne Institute/The Australian Economic and Social Outlook Conference today that rates were more likely to rise than fall.
He said his judgment was that the risk of high personal debt and potentially higher rates in a high house-price environment was being well managed.
“It’s going to be important for people to be prudent,” he said during questioning from The Australian’s Paul Kelly.
In wide-ranging comments, Mr Turnbull also warned the electorate that there was no avoiding the historic changes in the national and global economies.
He was always concerned about high household debt amid discussions about a tightening of monetary policy.
In his earlier speech, he said Australians needed to front up to the economic challenges. “You can’t hide under the doona and pretend it’s not happening,” Mr Turnbull said.
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Better to talk down the housing market than see the RBA forced to rip it apart.
