Half of households worried by future RBA action

By Mozo ·

Half of Australia’s households are worried by the prospect of another official interest rate hike by the Reserve Bank (RBA), new research shows.

Dun & Bradstreet’s consumer credit survey of 1,205 adults across Australia found that 49 per cent expect a further interest rate rise to put a dent in their household finances, the AAP reported.

It also discovered that people with dependent children are more concerned about their financial prospects, with 55 per cent of respondents with children believing another rate increase would impact negatively on their finances against 43 per cent of households without children.

In addition, Dun & Bradstreet reported that half of respondents aged under 50 intend to use credit to pay for planned expenses during this year’s September quarter, with one quarter of Australians aged over 50 years planning to do the same.

Last week, in an interview with the Australian, Westpac chief economist Bill Evans suggested that the RBA could hike the official cash rate to coincide with an expected national election later this year. The rate currently stands at 4.5 per cent.

This article is brought to you by Mozo – Helping you compare interest ratesADNFCR-1761-ID-19889863-ADNFCR