Interest rate rise 'will adversely affect 47 per cent of people'

Mozo

Monday 18 July 2011

If the Reserve Bank of Australia increases interest rates, some 47 per cent of the population believe the move will have a negative affect on their financial situation, a recent study has revealed.

Interest rate rise' could hurt 47 per cent of Aussies financially'

According to the latest Dun & Bradstreet Consumer Credit Expectations Survey released last week, this represents an improvement in optimism, as in the March 2011 survey this figure was 50 per cent. 

However, the study also indicated that Aussies are becoming increasingly cautious with their money, with the proportion of people planning to make a "major purchase" dropping six percentage points to just 26 per cent.

However, Christine Christian, chief executive officer of the firm, commented: "Consumer concern about the effects of a rate rise on household finances does not seem to be deterring Australians from utilising credit."

Indeed, more than one-third said they were planning to use their credit to purchase something that would otherwise be unaffordable.

This comes after the central bank revealed that in the last five years the number of credit cards in circulation rose by 20 per cent.

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