Financial wellbeing plummets heading into the festive season: RBA expected to increase cash rate November
Three-in-four Australians are worried about their finances
31 October 2022
- One-in-five people are spending multiple hours a day worrying about their finances
- A quarter (26%) feel extremely stressed and anxious about the rising cost of living
- Groceries have joined mortgages as the area causing the most amount of financial stress
- Annual inflation has risen to 7.3%, the highest since 1990
- The RBA is expected to increase the cash rate by 25 basis points, increasing to 2.85%
- Repayments on a $500,000 mortgage could be $776 more expensive than May, if 25bp is passed on
- Average variable interest rate is 5.18%, lowest variable rate is currently 3.64% with Police Credit Union
After a year of rising inflation and interest rates, three-in-four Australians are worried about their financial future, according to new research from financial comparison site Mozo.com.au.
“We are starting to see the full effects of back to back interest rates rises and skyrocketing inflation with the majority of Aussies now admitting they worry about their finances, '' said Claire Frawley, Personal Finance Expert at Mozo.
Even more concerning as we head into the festive season, of those surveyed one-in-five now say they are spending multiple hours a day worrying.
Inflation has risen to 7.3% annually, which is the highest growth in one year since 1990.
Mozo research shows grocery bills are now causing the same level of stress as making repayments on a mortgage.
“Now is the time for people to really step back and cut waste out of their household budgets where possible, especially as end of the year creeps closer.”
The Reserve Bank of Australia (RBA) is expected to increase the cash rate by 25 basis points at its next meeting on Tuesday, taking the cash rate to 2.85%. If the rate increase is passed onto borrowers with a $500,000 mortgage, it would mean their repayments would be $776 more expensive than back in May.
The average variable home loan rate is currently 5.18%, which is 154 basis points above the lowest rate in the Mozo database, which is 3.64% with Police Credit Union.
The Mozo rate change calculator can help people predict mortgage repayments.