65% of Australians Fear Another RBA Rate Hike Will Hit Budgets as Cash Rate Sits at 4.35%
Updated
Updated · comparethemarket.com.au · Aug 9
65% of Australians Fear Another RBA Rate Hike Will Hit Budgets as Cash Rate Sits at 4.35%
3 articles · Updated · comparethemarket.com.au · Aug 9
Summary
65% of Australians surveyed said another Reserve Bank rate increase this year would hurt their household budget, versus 35% who said it would not have a major impact.
A 0.25-point rise would add about A$120 a month to an average A$735,000 mortgage, after the RBA already raised rates in February, March and May and then held steady in June.
29% said they would cut discretionary spending, 21% would trim essentials such as groceries and fuel, and 17% said another hike would worsen financial stress or anxiety.
Around 31% of Australians own their home outright, pointing to a two-speed economy in which indebted households cut back while debt-free owners keep spending, potentially weakening monetary policy's effect on inflation.
Even with budgets under pressure, 28.4% of mortgage holders said they should look for a better loan deal but have not acted, while 11.4% said they do not know where to start.