Billionaire Gerry Harvey claimed there was no reason to have

Gerry Harvey says don’t ‘be afraid’ of biggest interest rate hike in 22 years

Billionaire Gerry Harvey has claimed there is no reason to be ‘afraid’ as the cost of living soars and interest rates rise in the biggest increase in two decades.

The chairman of Harvey Norman, which is worth more than $2.6 billion, said residents should not “freak out” and that they will “survive” any further financial pressure.

“We’ve got the lowest interest rates in a century, now they’re rising from next to nothing…they’ve never been this low,” he told 6PR Mornings on Friday.

The Reserve Bank of Australia raised the key rate from 0.25% to 0.85% on Tuesday, marking the biggest interest rate hike in 22 years.

Billionaire Gerry Harvey has claimed there is no reason to be ‘afraid’ as the cost of living soars and interest rates rise in the biggest increase in two decades

The Reserve Bank of Australia raised the interest rate by 0.25% to 0.85 on Tuesday - marking the biggest rise in interest rates in 22 years

The Reserve Bank of Australia raised the interest rate by 0.25% to 0.85 on Tuesday – marking the biggest rise in interest rates in 22 years

The rise shattered the expectations of financial experts who predicted a slight increase of 0.25% instead of 0.5.

Mr Harvey said the increase was still manageable and pale in comparison to home loans taken out decades ago – with the RBA setting interest rates at 17% in 1990.

“Then I talk to people who paid for their homes under those circumstances – not many by the way – but we all survived,” he said.

“When interest rates finally go up to what they’re going to do…may go to two or three percent, don’t be surprised if they hit five, six or seven.

“If so, we’ve survived with this stuff in the past. Don’t panic too much about it.

Inflation jumped 5.1%, marking the fastest growth rate in 21 years.

Australian families are feeling the pinch with some fruits and vegetables up 50% year-to-date, petrol prices over $2 a liter and wholesale energy bills soaring 141% .

Mr Harvey said residents should not panic as there was no shortage of money-making opportunities with 400,000 vacancies in the employment sector.

“Stay very optimistic, go ahead and do your best, work hard, stay optimistic and then it will hurt a little and then it will be good for you.

“That’s what happens with every recession,” he explained.

“Work hard every day, seven days a week.”

Australian families are feeling the pinch with some fruits and vegetables up 50% year-to-date, petrol prices above $2 a liter and wholesale energy bills soaring 141%

Australian families are feeling the pinch with some fruits and vegetables up 50% year-to-date, petrol prices above $2 a liter and wholesale energy bills soaring 141%

How much more will YOU have to pay on your home loan?

$500,000: Monthly repayments will increase by $133, from $2,410 to $2,543

$600,000: Monthly repayments will increase by $159, from $2,890 to $3,049

$750,000: Monthly repayments will increase by $199 from $3,610 to $3,809

$1 million: Monthly repayments will increase by $265, from $4,810 to $5,075

Data based on a variable rate going from 3.11% to 3.61%

“Now we are panicking because interest rates are going up one, two or three,” he said.

“Of course some people get hurt because of this but the reality is you can’t get people to work for you right now, every cafe has a sign outside saying please come and work for me.”

Mr Harvey backed calls for higher pay rates after Prime Minister Anthony Albanese highlighted raising the minimum wage during his election campaign.

However, he warned that some companies may not be able to stay afloat if they are forced to pay their workers more.

He also told Australians to start buying stocks as prices were low.

“Now when everyone tells you when the world is coming to an end, come in and buy, because most people don’t do that, they’re scared.”

Mr. Harvey and his company have long been criticized for refusing to repay the millions received in taxpayer-funded JobKeeper payments received during the pandemic despite booming profits.

The largest rate increase since 2000 will add $133 per month on a $500,000 loan over 25 years and $265 per month on a loan worth $1 million.

Westpac Consumer and Business Banking chief executive Chris de Bruin said the bank understands this is a difficult time for its customers and anyone who needs “additional help or is in financial difficulty” can turn to its specialist teams for assistance.

The RBA’s shock decision is just the second rate hike in 11 years after the central bank rose from a record low of 0.1% in May to curb spiraling inflation.

Further rapid increases in the rate of shooting are expected to follow every month at least until the end of the year, as Treasurer Jim Chalmers has admitted the cost of living crisis will get “tougher” for every Australian.

Mr Harvey said residents should not panic as there was no shortage of money-making opportunities with 400,000 vacancies in the employment sector.

Mr Harvey said residents should not panic as there was no shortage of money-making opportunities with 400,000 vacancies in the employment sector.

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