Homeowners’ hopes of a pre-Christmas budget boost have been crushed, with experts warning job losses, rising inflation and interest-rate hikes are now on the cards.

EQ Economics and Judo Bank chief economic adviser Warren Hogan delivered the devastating blow, warning cash-strapped mortgage holders the best they can hope for is an interest-rate hold.

“Thinking the next move in interest rates is down is completely inappropriate, as inflation heads above the RBA (Reserve Bank of Australia) target band and also the economy grinds out a recovery,” he told SkyNews.

In an even more ominous warning, Mr Hogan points to the neutral cash rate being higher than previously thought.

“Inflation has not left our economy and the big learning out of this is what is the right level of inflation for this

See Full Page