Mark Bouris predicts another interest rate hike from the RBA
Finance guru Mark Bouris has a grim prediction for Australians awaiting the Reserve Bank's rate rise decision tomorrow.
The Yellow Brick Road chairman says he thinks the board will once again jack up the figure - and they'll keep doing it until a key threshold is reached.
Speaking with economist Stephen Koukoulas in a video posted to his Instagram, Bouris said the figure to watch was unemployment.
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Mark Bouris and Stephen Koukoulas fear there will be another rate hike. Mark Bouris/Instagram
"I'm going to say there's a rate hike," Bouris said.
"The only reason I say it is because (RBA deputy governor) Michelle Bullock's paper, out last Tuesday, talked about unemployment at 4.5 per cent."
Bouris said until unemployment reached that level, rate hikes were likely to continue.
Bullock caused controversy recently when she said the unemployment rate would need to rise in order to halt inflation.
It currently sits at 3.5 per cent.
To rise one per cent would mean a further 140,000 people were unemployed, Koukoulas said.
The RBA's calculations take into account the non-accelerating inflation rate of unemployment (NAIRU) which, per the institution's own website, "is the lowest unemployment rate that can be sustained without causing wages growth and inflation to rise".
Koukoulas said there was "clear evidence" that the unemployment rate had stopped falling.
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