‘The first things to go’: How rate rises will hit spending

Eating fewer meals out, hitting pause on planned home renovations and forgoing the latest fashions are just some ways households are expected to manage galloping inflation and further interest rate rises.on Tuesday, with markets pricing rates to hit 3 per cent by the end of the year. The central bank is forecasting inflation to reach 7.75 per cent by the end of the year and remain above its 2 to 3 per cent target band throughout next year.

“There are some people who through COVID lost their job, lost their car, and ended up in a worse financial position,” Ms Timbrell said. Ms Timbrell said a pullback in spending was likely later in the year, at which point households would cut back on discretionary purchases such as cars and furniture. Surveyor Daniel Jung and solicitor Dominique Salvestrin are among the Australian families concerned about the effects of high inflation and rising interest rates.

The RBA raised rates multiple times during their settlement period and attempts to fix their home loan rate have faced delays.“Because of interest rate rises, we are certainly more aware that any potential savings we would have at the end of the year will be significantly decreased than what we would have had otherwise,” Ms Salvestrin said.

“If your view was the consumer is doing it really tough, you’d expect people to trade down into lower price, lower quality items, or buy less, but we aren’t seeing that yet,” he said.

Translation: I fcked up by taking out a jumbo mortgage I couldn’t afford, to overpay for a crap house, but bought anyway because I believed Philip Lowe’s ‘no rate rise till 2024 speech’, and because of FOMO trying to keep up with my mates in the Eastern Suburbs 🤦🏼🤦🏼

Loans Loans Latest News, Loans Loans Headlines

Similar News:You can also read news stories similar to this one that we have collected from other news sources.

Bobby bought at the market's peak. He's now reassessing his lifestyle to pay the mortgageAfter eye-watering property price rises in recent years, house values are now starting to drop, but those who bought at the height are facing a 'perfect storm' as interest rates rise. Basics of economics. If you can't afford a loan at interest rates above 5% then you should never have gotten a loan. The banks have fooled everyone Perhaps he should have listened to everyone who predicted this would happen. Wait a sec... He has to change his lifestyle to handle minor rate rises? We aren't even back to the last 20year average of rates. Did he think they were staying at emergency level for his entire mortgage?
Source: abcnews - 🏆 5. / 83 Read more »

The Loop: Another interest rate rise, first bill passes new parliament, a double defamation and a giant sinkholeHere's your TL;DR for today's news. Is that where the Australian economy is ,in that sink hole. Should be filled with a few lousy so called economic managers. The portal to hell has been open for some time, hell is empty and all the devils are here
Source: abcnews - 🏆 5. / 83 Read more »

Reserve Bank lifts rates for historic fourth consecutive monthThe Reserve Bank has lifted interest rates for a historic fourth month in a row, taking the cash rate to 1.85 per cent as it works to dampen rising inflation. Forcing a recession, where the rich can reap all the benefits 😡 A crushing cost to families already struggling & having to choose between food, heating, fuel, gas, electricity, rent or mortgage. But our political elite, Labor, gifts politicians & high incomes $12,000 tax cut year after year from 2024. A 220 billion budget time bomb, madness. Will depositors get more?
Source: theage - 🏆 8. / 77 Read more »