Aussies with term deposits 'would benefit from interest rates hike'

While many groups have been emphasising the negative impact a hike in interest rates would have on those with home loans, one expert has observed that people with term deposits and savings accounts but no mortgage would benefit from a hike.

Jason Wilson, assistant professor in journalism at the University of Canberra, noted that there are up to 1.6 million Aussies who live off investments, reports ABC News.

He noted that those who make a living selling property or who rely on money in term deposits will be better off if there is an increase in the cash rate.

Robert Curley, director in charge of policy development at the Association of Independent Retirees, told the publication that the majority of people who have ended their working life do not owe money.

Indeed, he suggested that the ideal situation for them is "high interest rates, low inflation and investment growth".

This comes after Altius Asset Management's senior portfolio manager Gavin Goodhand told the Financial Standard that investors could benefit from putting some of their capital into term deposits.

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