Why a supersized interest rate rise may be on the cards

The Reserve Bank could slug home buyers with a mammoth 0.75 percentage point interest rate rise next month.

It comes after new figures revealed unemployment has fallen to its lowest level in 48 years.

ABS dats shows the jobless rate in June was 3.5 per cent, the lowest since 1974.

Senior economics correspondent for The Age, Shane Wright, says rising interest rakes are “actually a positive sign”.

“The fact they’re going up says ‘Right, the economy is improving’.”

Press PLAY below to hear Mr Wright’s explanation of Australia’s current economic position