Global rate rise will hit households

A RISE in global interest rates could have implications for debt-laden Australian households and the wider economy, Reserve Bank Governor Philip Lowe has warned.

Dr Lowe says an expected lift in interest rates would flow through to Australia over time and the high levels of household debt means spending could be quite sensitive to such increases.

Dr Lowe said a rise in global interest rates did not have automatic implications for Australia but an increase would be visible over time.