The Reserve Bank of Australia (RBA) has acknowledged that its recent interest rate decision, which saw rates rise to 3.85%, was not the welcome news many homeowners were hoping for.
In a press statement, RBA Governor Philip Shaw described the move as "not the news mortgage holders want to hear", emphasizing the significant impact it would have on household finances.
With the new rate in place, average monthly mortgage repayments are expected to increase by around $800-1,000. This will be particularly burdensome for those living on fixed incomes or with tight budgets, who may struggle to absorb the added expense.
The RBA's decision has also been criticized for exacerbating a slowdown in consumer spending and economic growth, which is already facing headwinds from rising inflationary pressures and global economic uncertainty.
As Shaw noted, the central bank's primary objective remains price stability, but he acknowledged that the rate hike would have an immediate impact on households' discretionary spending power. The RBA has maintained its commitment to keeping inflation under control, but many are now questioning whether this comes at too great a cost to everyday Australians.
In a press statement, RBA Governor Philip Shaw described the move as "not the news mortgage holders want to hear", emphasizing the significant impact it would have on household finances.
With the new rate in place, average monthly mortgage repayments are expected to increase by around $800-1,000. This will be particularly burdensome for those living on fixed incomes or with tight budgets, who may struggle to absorb the added expense.
The RBA's decision has also been criticized for exacerbating a slowdown in consumer spending and economic growth, which is already facing headwinds from rising inflationary pressures and global economic uncertainty.
As Shaw noted, the central bank's primary objective remains price stability, but he acknowledged that the rate hike would have an immediate impact on households' discretionary spending power. The RBA has maintained its commitment to keeping inflation under control, but many are now questioning whether this comes at too great a cost to everyday Australians.
I'm not surprised by the RBA's interest rate decision, tbh. They've been saying that the economy is still pretty volatile and they need to keep a close eye on inflation. But $800-1,000 extra for mortgages? That's a big chunk of change for people who are already living paycheck to paycheck 
. I get that keeping inflation under control is important, but at what cost to households? It's just not the welcome news many were hoping for 
. And yeah, this might not be the best timing with global economic uncertainty and all... seems like they're playing it a bit too safe, if you ask me 
.
. I mean, I remember when interest rates were like 6% and people were all, "Good luck affording their houses!" 
Now it seems like they're just making things worse for mortgage holders. $800-1,000 is like, a lot of cash to go towards the bills 
he's already saving up for like 2 years now and now he'll have to pay way more for his mortgage 
does anyone know how they can get advice on that? i also just watched a video on youtube about interest rates and it said something about the global economy being uncertain? 
what's going on with that? can someone explain it in simple terms pls?
3.85% is already pretty steep, and adding another $800-1,000 on top of that is just cruel 
. And what about those living on fixed incomes? They're barely scraping by as it is 
it's like they're trying to keep inflation under control but are we losing sight of what really matters - making life more manageable for regular folks? 
the $800-$1000 hike is gonna crush me like that 
. And what about all those people living on fixed incomes or with tight budgets? They're the ones who'll be feeling the pinch the most 
. I'm not saying they shouldn't try to keep inflation under control, but can't they find ways to do it without hurting innocent Aussies? It just seems like another way for the banks to get richer 
hows that supposed to help anyone?? seems like rba just wanna make rich ppl richer with all these rate hikes 
And what's this about slowing down consumer spending, isn't that kinda good for the economy or something? 