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AAP
AAP
Politics
Marion Rae and Andrew Brown

DARK SECRETS: Inflation pressure a global challenge pm | Rare Historical Photos

The looming interest rate hikes are a time bomb for whoever wins the federal election in May. (AAP)

On the eve of a tight election, the central bank has warned that rising prices and interest rates will make it harder for some borrowers to make payments.

The quarterly Financial Stability Review released on Friday says with inflation higher and more persistent than expected, there is a risk that interest rates could increase by more than financial markets expect.

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