Gerry Harvey says don’t be ‘scared’ over largest interest rake hike in 22 years


Billionaire Gerry Harvey tells Aussies NOT to worry about the cost of living crisis as he shares his one piece of advice for getting ahead

  • Gerry Harvey claimed there is no reason to be ‘scared’ as cost of living soars
  • Harvey Norman chairman, who is worth $2.6billion, told people to not ‘panic’
  • Reserve Bank of Australia raised interest rates 0.5 per cent to 0.85 on Tuesday 

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

The Harvey Norman chairman, who is worth more than $2.6billion, said residents should not be ‘panicking’ and that they will ‘survive’ any extra financial pressures.

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

The Reserve Bank of Australia raised the cash rate from 0.25 per cent to 0.85 on Tuesday – marking the largest interest rate rise in 22 years.

Billionaire Gerry Harvey has claimed there is no reason to be 'scared' as cost-of-living soars and interest rates rise in the largest increase in two decades

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

The Reserve Bank of Australia raised the cash rate from 0.25 per cent to 0.85 on Tuesday - marking the largest interest rate rise in 22 years

The Reserve Bank of Australia raised the cash rate from 0.25 per cent to 0.85 on Tuesday – marking the largest interest rate rise in 22 years

The uptick smashed expectations by financial experts who forecast a minor increase of 0.25 per cent rather than 0.5.

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

‘Then I talk to people who paid off their house under those circumstances – not many by the way – but we all survived,’ he said. 

‘When interest rates finally go up to whatever they’re going to go… might go to two or three per cent , don’t be surprised if they go to five, six or seven. 

‘If it does, we’ve survived with those sorts of things in the past. Let’s not panic too much about it.’ 

Inflation has surged by 5.1 per cent marking the fastest rate of growth in 21 years.

Aussie families are feeling the pinch with some fruit and vegetables up 50 per cent since the start of the year, petrol prices over $2-a-litre and wholesale energy bills skyrocketing by 141 per cent. 

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

‘Keep very optimistic, get out there and do the very best you can, work hard, keep optimistic and then it’ll hurt a bit and then it will come good on you.

‘That’s what happens every recession,’ he explained.

‘Work hard everyday, seven days a week.’ 

Aussie families are feeling the pinch with some fruit and vegetables up 50 per cent since the start of the year, petrol prices over $2-a-litre and wholesale energy bills skyrocketing by 141 per cent

Aussie families are feeling the pinch with some fruit and vegetables up 50 per cent since the start of the year, petrol prices over $2-a-litre and wholesale energy bills skyrocketing by 141 per cent

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

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

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

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

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

Data based on variable rate increasing from 3.11 per cent to 3.61 per cent

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‘Now we’re panicking because interest rates are going from one, two or three,’ he said.

‘So sure some people get hurt on that, but the reality is, you can’t get people to work for you at the moment, every coffee shop has a sign outside saying please come and work for me.’

Mr Harvey backed calls to increase pay rates after prime minister Anthony Albanese made minimum wage increase a focus during his election campaign.

However he warned some businesses may not be able to stay afloat if they were forced to pay their workers more. 

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

‘Now when everyone is telling you when the world is coming to an end, get in and buy, because most people don’t do that, they get scared.’

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

Westpac Consumer and Business Banking Chief Executive, Chris de Bruin said the bank understands it’s a tough time for its customers and that anyone who requires ‘some extra help or who are in financial difficulty’ can speak to their specialist teams for assistance.

The RBA’s shock decision is just the second rate rise in 11 years after the central bank moved from the record low setting of 0.1 per cent in May to curb spiralling inflation.

Further rapid-fire rate hikes are widely predicted to follow every month until at least the end of the year, as Treasurer Jim Chalmers admitted the cost of living crisis will get ‘harder’ for every Australian. 

Mr Harvey claimed residents should not panic as there was no shortage of opportunities to make money with 400,000 vacancies in the employment sector

Mr Harvey claimed residents should not panic as there was no shortage of opportunities to make money with 400,000 vacancies in the employment sector

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