David Koch Urges RBA to Hold Rates as 3 Hikes Add A$4,128 to Annual Mortgages
Updated
Updated · realestate.com.au · Jun 15
David Koch Urges RBA to Hold Rates as 3 Hikes Add A$4,128 to Annual Mortgages
3 articles · Updated · realestate.com.au · Jun 15
Summary
Compare the Market’s David Koch urged the Reserve Bank to leave rates unchanged at this week’s meeting, warning another hike could inflict major economic damage and trigger a sharp rise in unemployment.
A$4,128 a year has been added to repayments for the average mortgage holder by the RBA’s previous three hikes, he said, arguing borrowers would need roughly A$6,000 in extra pre-tax income to absorb the hit.
Koch said households were already being squeezed by higher petrol prices and tax uncertainty, while some borrowers still pay above 7% despite rates available in the high-5% to low-6% range.
37 of 38 economists in Finder’s cash-rate survey expect the RBA to hold in June, with one University of Melbourne panellist forecasting another increase that would lift rates to their highest since October 2011.
With unemployment rising, can the RBA risk another rate hike to fight stubborn inflation?
Are economic models ignoring the breaking point for Australian families facing another rate hike?
Why does one expert predict a rate hike when 37 others expect a hold?
RBA’s 2026 Policy Challenge: Balancing Inflation, Mortgage Stress, and Global Uncertainty
Overview
As of June 2026, the Reserve Bank of Australia (RBA) faces a challenging decision on interest rates, with economists and financial institutions split on whether to hike, hold, or cut rates. After a period of relief from previous cash rate cuts, expectations shifted toward increases, with some experts predicting multiple hikes this year. However, rising cost-of-living pressures and global uncertainties, especially from the Middle East conflict, have made the outlook more uncertain. The RBA must now balance controlling inflation with the risk of putting more strain on households, as higher rates could further increase mortgage stress and slow economic growth.