It's a fact of life these days — when the Reserve Bank of Australia speaks, it’s to announce an interest rate hike. This often signals tougher days ahead, at least in terms of finances, for everyday Aussies and seniors across the nation.

Just recently, RBA Governor Philip Lowe released a statement outlining that the bank would be raising interest rates by another 25 basis points (0.25 per cent).

This brings the current target cash rate by the central bank to 3.35 per cent after nine straight months of increases — the last of which was another 25 basis point (or 0.25 per cent) hike last December at 3.10 per cent.

Unfortunately, along with the hike comes a slew of problems for retirees, homeowners, investors with mortgage debt, and those who depend on their savings with banks like ANZ and NAB set to reflect the change in monetary policy.

Today show host Karl Stefanovic, perhaps among the many exhausted from yet another sign of belt-tightening, unleashed an impassioned and scathing rant towards the big banks and the RBA.

'I’m completely off the RBA and the big banks this morning… Hard-working Australians are being let down,' Stefanovic bluntly stated during the first hour of the show on Wednesday.

Today host Karl Stefanovic had some choice words for banks after the RBA announced the ninth straight interest rate hike. Image Credit: YouTube/Test 5

He then continued his impassioned attack against the major banks, alluding to their community-focused image as a giant farce.

'What about our banks this morning? Our kind-hearted, community-focused banks,’ he said.

‘You’ve all seen the ads, “We care about you, we see you.”’

'But how much do they really care? Do you remember during the pandemic when we had rate cuts, the banks seldom passed them on, and now they‘re like greedy moths to the flame, eating away at your savings, eating into your standard of living, eating into your future? They should be ashamed of themselves.'

Stefanovic's comments echoed the views of Nick McKim, Treasury spokesman for the Greens, who had earlier stated that the RBA was ‘willing to smash Australia into recession’ with its pro-rich policy.

The NSW Premier, Dominic Perrottet, also shared his distaste at the banks' decision to raise interest rates, claiming it would 'hurt household budgets' and referring to the banks' 'double standards' when it came to rate hikes in the past.

‘I was Treasurer of this state for five years. During some of the darkest days in the pandemic when the Reserve Bank was cutting rates,’ he said.

‘Only on one occasion did the banks pass that rate cut on in full, and on another occasion, they didn’t pass it on in full.’

‘They’re very quick to raise rates but not very quick to cut them.’

Source: YouTube/Test 5​

Initial reports said that NAB and ANZ announced an increase in rates. NAB won’t be passing the change on to savings clients for the time being, while ANZ Plus Save account holders will now be seeing a 4 per cent interest rate.

Steve Mickenbecker of Canstar expects this most recent rate hike to hit many Aussies already reeling from high costs of living.

‘The increased cost of living is eroding our household budget. Every cost is going up and we are looking for ways to save on groceries, phone plans, petrol, electricity, insurances and everything else,’ he said.

‘There is no line in the household budget that is hurting borrowers more than the home loan. Nor is there one that has the potential for greater savings.’

‘The $500,000 home loan will be up by $12,000 this coming year.

‘That $12,000 increase is the equivalent of your annual home insurance, car insurance, electricity bills, home internet and mobile phone plan.

‘It underlines which expense is the real big picture for your finances.’

Key Takeaways

• Karl Stefanovic has unleashed on the ‘greedy’ big banks after the RBA issued a ninth consecutive interest rate hike.
• NSW Premier Dominic Perrottet accused banks of ‘double standards’ over recent rate rises.
• The change is expected to hit those with home loans hard, with expected interest rate hikes said to push an extra $12,000 towards Aussies already struggling to make ends meet.
• The RBA also admitted further rate hikes are on the horizon.

And in case you’re hoping that this will be the last of rate hikes to come, the RBA said in a statement announcing the hike that more will be needed to tamp down on soaring inflation.

‘The Board’s priority is to return inflation to target,’ the RBA said.

‘High inflation makes life difficult for people and damages the functioning of the economy. And if high inflation were to become entrenched in people’s expectations, it would be very costly to reduce later.’

‘The Board is seeking to return inflation to the 2–3 per cent range while keeping the economy on an even keel, but the path to achieving a soft landing remains a narrow one.

‘The Board expects that further increases in interest rates will be needed over the months ahead to ensure that inflation returns to target and that this period of high inflation is only temporary.

The RBA has raised interest rates consistently since May 2022. Image Credit: Seniors Discount Club

‘In assessing how much further interest rates need to increase, the Board will be paying close attention to developments in the global economy, trends in household spending and the outlook for inflation and the labour market.

‘The Board remains resolute in its determination to return inflation to target and will do what is necessary to achieve that.’

Er… with what’s looming ahead, you might be interested in how to shop smarter at the grocery store.

What are your thoughts on this most recent interest rate hike by the RBA? Do you share Karl’s views, or do you agree with the central bank that this is necessary to control inflation?

And in the meantime, what adjustments will you make, if there are any, to the anticipated effects of the development?

Tell us your thoughts below!

Source: YouTube/ABC News Australia​

 

[Marivig]

I don't understand how hiking up Mortgage rates helps with inflation, with families struggling to put food on the table already and everything else going up it's getting impossible to live!
With mortgage rates rising like they are, people are going to be losing their houses, which will increase people looking for rentals, which are also hard to find. Then there will be more homeless, it doesn't make any sense to me??

 

[Wandiwa]

I don't understand how hiking up Mortgage rates helps with inflation, with families struggling to put food on the table already and everything else going up it's getting impossible to live!
With mortgage rates rising like they are, people are going to be losing their houses, which will increase people looking for rentals, which are also hard to find. Then there will be more homeless, it doesn't make any sense to me??

If you really want to understand the need for interest hikes to defeat inflation, type something like this into Google ... how-do-increasing-interest-rates-affect-inflation ... Hope this helps.

 

[Rainy]

It's a fact of life these days — when the Reserve Bank of Australia speaks, it’s to announce an interest rate hike. This often signals tougher days ahead for, at least in terms of finances, for everyday Aussies and seniors across the nation.

Just recently, RBA Governor Philip Lowe released a statement outlining that the bank would be raising interest rates by another 25 basis points (0.25 per cent).

This brings the current target cash rate by the central bank to 3.35 per cent after nine straight months of increases — the last of which was another 25 basis point (or 0.25 per cent) hike last December at 3.10 per cent.

Unfortunately, along with the hike comes a slew of problems for retirees, homeowners, investors with mortgage debt, and those who depend on their savings with banks like ANZ and NAB set to reflect the change in monetary policy.

Today show host Karl Stefanovic, perhaps among the many exhausted from yet another sign of belt-tightening, unleashed an impassioned and scathing rant towards the big banks and the RBA.

'I’m completely off the RBA and the big banks this morning… Hard-working Australians are being let down,' Stefanovic bluntly stated during the first hour of the show on Wednesday.

View attachment 13057

Today host Karl Stefanovic had some choice words for banks after the RBA announced the ninth straight interest rate hike. Image Credit: YouTube/Test 5

He then continued his impassioned attack against the major banks, alluding to their community-focused image as a giant farce.

'What about our banks this morning? Our kind-hearted, community-focused banks,’ he said.

‘You’ve all seen the ads, “We care about you, we see you.”’

'But how much do they really care? Do you remember during the pandemic when we had rate cuts, the banks seldom passed them on, and now they‘re like greedy moths to the flame, eating away at your savings, eating into your standard of living, eating into your future? They should be ashamed of themselves.'

Stefanovic's comments echoed the views of Nick McKim, Treasury spokesman for the Greens, who had earlier stated that the RBA was ‘willing to smash Australia into recession’ with its pro-rich policy.

The NSW Premier, Dominic Perrottet, also shared his distaste at the banks' decision to raise interest rates, claiming it would 'hurt household budgets' and referring to the banks' 'double standards' when it came to rate hikes in the past.

‘I was Treasurer of this state for five years. During some of the darkest days in the pandemic when the Reserve Bank was cutting rates,’ he said.

‘Only on one occasion did the banks pass that rate cut on in full, and on another occasion, they didn’t pass it on in full.’

‘They’re very quick to raise rates but not very quick to cut them.’

Source: YouTube/Test 5​

Initial reports said that while NAB and ANZ announced an increase in rates, NAB won’t be passing the change on to savings clients for the time being, while ANZ Plus Save account holders will now be seeing a 4 per cent interest rate.

Steve Mickenbecker of Canstar expects this most recent rate hike to hit many Aussies already reeling from high costs of living.

‘The increased cost of living is eroding our household budget. Every cost is going up and we are looking for ways to save on groceries, phone plans, petrol, electricity, insurances and everything else,’ he said.

‘There is no line in the household budget that is hurting borrowers more than the home loan. Nor is there one that has the potential for greater savings.’

‘The $500,000 home loan will be up by $12,000 this coming year.

‘That $12,000 increase is the equivalent of your annual home insurance, car insurance, electricity bills, home internet and mobile phone plan.

‘It underlines which expense is the real big picture for your finances.’

Key Takeaways

• Karl Stefanovic has unleashed on the ‘greedy’ big banks after the RBA issued a ninth consecutive interest rate hike.
• NSW Premier Dominic Perrottet accused banks of ‘double standards’ over recent rate rises.
• The change is expected to hit those with home loans hard, with expected interest rate hikes said to push an extra $12,000 towards Aussies already struggling to make ends meet.
• The RBA also admitted further rate hikes are on the horizon.

And in case you’re hoping that this will be the last of rate hikes to come, the RBA said in a statement announcing the hike that more will be needed to tamp down on soaring inflation.

‘The Board’s priority is to return inflation to target,’ the RBA said.

‘High inflation makes life difficult for people and damages the functioning of the economy. And if high inflation were to become entrenched in people’s expectations, it would be very costly to reduce later.’

‘The Board is seeking to return inflation to the 2–3 per cent range while keeping the economy on an even keel, but the path to achieving a soft landing remains a narrow one.

‘The Board expects that further increases in interest rates will be needed over the months ahead to ensure that inflation returns to target and that this period of high inflation is only temporary.

View attachment 13084

The RBA has raised interest rates consistently since May 2022. Image Credit: Seniors Discount Club

‘In assessing how much further interest rates need to increase, the Board will be paying close attention to developments in the global economy, trends in household spending and the outlook for inflation and the labour market.

‘The Board remains resolute in its determination to return inflation to target and will do what is necessary to achieve that.’

Er… with what’s looming ahead, you might be interested in how to shop smarter at the grocery store.

What are your thoughts on this most recent interest rate hike by the RBA? Do you share Karl’s views, or do you agree with the central bank that this is necessary to control inflation?

And in the meantime, what adjustments will you make, if there are any, to the anticipated effects of the development?

Tell us your thoughts below!

Source: YouTube/ABC News Australia​

It is a requirement of a 1959 banking Act that the RBA consults directly with the Federal Goverment. So when fiscal policies adversely impact families and communities, our elected officials must stand to account for their actions as well instead of inferring the RBA is an entity unto it's own, without reproach. Anz ceo pay packet to 2022 was $5.5 million. Bank elsewhere, find a B-corp bank like Bank Australia.

 

[Flash Harry 22]

I know it can be very tough for a lot of families but unfortunately interest rate increases (and decreases when possible) are a fact of life and are required for the financial stability of the country. I have no interest whatsoever in anything Karl Stefanovic has to say, he is the same as just about every other mug tv journalist trying to stir the pot and sound important.

 

[Jbrown]

We have a one dimensional RBA and Govt. Economists say that cutting Govt spending is a means of reducing inflation, where is there talk about that. Not a vote winner but responsible management of the country. Won’t happen because politicians are weak individuals with self interest at heart. Further, home owners are being punished for issues overseas out of their control. The country is being run by amateurs, allow more competition in the finance sector and see how the big 4 handle that as well.

Surely a class action against the RBA chief not out of the question he has to go, he misled the Australian public.

 

[TomDevine55]

Bad policies from the government has had the RBA increase interest rates. Where were the bleaters when the interest rates charged by banks was 19%. This is finally catching up with unwise people who invested heavily into something they cant afford and that is unfortunate, its their issue not the RBA. Normal interest rates should normally be around 5/6% so consider yourselves lucky it is not up there yet. The RBA has rates at around 3.5%, yet the big banks are charging you their customers 6+% well above what the RBA suggests. Not only that if you have a savings account (not investment account), how many of you have received any interest payments from the big banks even though they have been making a profit from your money. Count yourselves lucky interest rates are still at record lows and question your greedy banks as to why they are charging so much and not giving you at least the RBA rate for your savings loans.

 

[Citizen]

It's a fact of life these days — when the Reserve Bank of Australia speaks, it’s to announce an interest rate hike. This often signals tougher days ahead for, at least in terms of finances, for everyday Aussies and seniors across the nation.

Just recently, RBA Governor Philip Lowe released a statement outlining that the bank would be raising interest rates by another 25 basis points (0.25 per cent).

This brings the current target cash rate by the central bank to 3.35 per cent after nine straight months of increases — the last of which was another 25 basis point (or 0.25 per cent) hike last December at 3.10 per cent.

Unfortunately, along with the hike comes a slew of problems for retirees, homeowners, investors with mortgage debt, and those who depend on their savings with banks like ANZ and NAB set to reflect the change in monetary policy.

Today show host Karl Stefanovic, perhaps among the many exhausted from yet another sign of belt-tightening, unleashed an impassioned and scathing rant towards the big banks and the RBA.

'I’m completely off the RBA and the big banks this morning… Hard-working Australians are being let down,' Stefanovic bluntly stated during the first hour of the show on Wednesday.

View attachment 13057

Today host Karl Stefanovic had some choice words for banks after the RBA announced the ninth straight interest rate hike. Image Credit: YouTube/Test 5

He then continued his impassioned attack against the major banks, alluding to their community-focused image as a giant farce.

'What about our banks this morning? Our kind-hearted, community-focused banks,’ he said.

‘You’ve all seen the ads, “We care about you, we see you.”’

'But how much do they really care? Do you remember during the pandemic when we had rate cuts, the banks seldom passed them on, and now they‘re like greedy moths to the flame, eating away at your savings, eating into your standard of living, eating into your future? They should be ashamed of themselves.'

Stefanovic's comments echoed the views of Nick McKim, Treasury spokesman for the Greens, who had earlier stated that the RBA was ‘willing to smash Australia into recession’ with its pro-rich policy.

The NSW Premier, Dominic Perrottet, also shared his distaste at the banks' decision to raise interest rates, claiming it would 'hurt household budgets' and referring to the banks' 'double standards' when it came to rate hikes in the past.

‘I was Treasurer of this state for five years. During some of the darkest days in the pandemic when the Reserve Bank was cutting rates,’ he said.

‘Only on one occasion did the banks pass that rate cut on in full, and on another occasion, they didn’t pass it on in full.’

‘They’re very quick to raise rates but not very quick to cut them.’

Source: YouTube/Test 5​

Initial reports said that while NAB and ANZ announced an increase in rates, NAB won’t be passing the change on to savings clients for the time being, while ANZ Plus Save account holders will now be seeing a 4 per cent interest rate.

Steve Mickenbecker of Canstar expects this most recent rate hike to hit many Aussies already reeling from high costs of living.

‘The increased cost of living is eroding our household budget. Every cost is going up and we are looking for ways to save on groceries, phone plans, petrol, electricity, insurances and everything else,’ he said.

‘There is no line in the household budget that is hurting borrowers more than the home loan. Nor is there one that has the potential for greater savings.’

‘The $500,000 home loan will be up by $12,000 this coming year.

‘That $12,000 increase is the equivalent of your annual home insurance, car insurance, electricity bills, home internet and mobile phone plan.

‘It underlines which expense is the real big picture for your finances.’

Key Takeaways

• Karl Stefanovic has unleashed on the ‘greedy’ big banks after the RBA issued a ninth consecutive interest rate hike.
• NSW Premier Dominic Perrottet accused banks of ‘double standards’ over recent rate rises.
• The change is expected to hit those with home loans hard, with expected interest rate hikes said to push an extra $12,000 towards Aussies already struggling to make ends meet.
• The RBA also admitted further rate hikes are on the horizon.

And in case you’re hoping that this will be the last of rate hikes to come, the RBA said in a statement announcing the hike that more will be needed to tamp down on soaring inflation.

‘The Board’s priority is to return inflation to target,’ the RBA said.

‘High inflation makes life difficult for people and damages the functioning of the economy. And if high inflation were to become entrenched in people’s expectations, it would be very costly to reduce later.’

‘The Board is seeking to return inflation to the 2–3 per cent range while keeping the economy on an even keel, but the path to achieving a soft landing remains a narrow one.

‘The Board expects that further increases in interest rates will be needed over the months ahead to ensure that inflation returns to target and that this period of high inflation is only temporary.

View attachment 13084

The RBA has raised interest rates consistently since May 2022. Image Credit: Seniors Discount Club

‘In assessing how much further interest rates need to increase, the Board will be paying close attention to developments in the global economy, trends in household spending and the outlook for inflation and the labour market.

‘The Board remains resolute in its determination to return inflation to target and will do what is necessary to achieve that.’

Er… with what’s looming ahead, you might be interested in how to shop smarter at the grocery store.

What are your thoughts on this most recent interest rate hike by the RBA? Do you share Karl’s views, or do you agree with the central bank that this is necessary to control inflation?

And in the meantime, what adjustments will you make, if there are any, to the anticipated effects of the development?

Tell us your thoughts below!

Source: YouTube/ABC News Australia​

It's a fact of life these days — when the Reserve Bank of Australia speaks, it’s to announce an interest rate hike. This often signals tougher days ahead for, at least in terms of finances, for everyday Aussies and seniors across the nation.

Just recently, RBA Governor Philip Lowe released a statement outlining that the bank would be raising interest rates by another 25 basis points (0.25 per cent).

This brings the current target cash rate by the central bank to 3.35 per cent after nine straight months of increases — the last of which was another 25 basis point (or 0.25 per cent) hike last December at 3.10 per cent.

Unfortunately, along with the hike comes a slew of problems for retirees, homeowners, investors with mortgage debt, and those who depend on their savings with banks like ANZ and NAB set to reflect the change in monetary policy.

Today show host Karl Stefanovic, perhaps among the many exhausted from yet another sign of belt-tightening, unleashed an impassioned and scathing rant towards the big banks and the RBA.

'I’m completely off the RBA and the big banks this morning… Hard-working Australians are being let down,' Stefanovic bluntly stated during the first hour of the show on Wednesday.

View attachment 13057

Today host Karl Stefanovic had some choice words for banks after the RBA announced the ninth straight interest rate hike. Image Credit: YouTube/Test 5

He then continued his impassioned attack against the major banks, alluding to their community-focused image as a giant farce.

'What about our banks this morning? Our kind-hearted, community-focused banks,’ he said.

‘You’ve all seen the ads, “We care about you, we see you.”’

'But how much do they really care? Do you remember during the pandemic when we had rate cuts, the banks seldom passed them on, and now they‘re like greedy moths to the flame, eating away at your savings, eating into your standard of living, eating into your future? They should be ashamed of themselves.'

Stefanovic's comments echoed the views of Nick McKim, Treasury spokesman for the Greens, who had earlier stated that the RBA was ‘willing to smash Australia into recession’ with its pro-rich policy.

The NSW Premier, Dominic Perrottet, also shared his distaste at the banks' decision to raise interest rates, claiming it would 'hurt household budgets' and referring to the banks' 'double standards' when it came to rate hikes in the past.

‘I was Treasurer of this state for five years. During some of the darkest days in the pandemic when the Reserve Bank was cutting rates,’ he said.

‘Only on one occasion did the banks pass that rate cut on in full, and on another occasion, they didn’t pass it on in full.’

‘They’re very quick to raise rates but not very quick to cut them.’

Source: YouTube/Test 5​

Initial reports said that while NAB and ANZ announced an increase in rates, NAB won’t be passing the change on to savings clients for the time being, while ANZ Plus Save account holders will now be seeing a 4 per cent interest rate.

Steve Mickenbecker of Canstar expects this most recent rate hike to hit many Aussies already reeling from high costs of living.

‘The increased cost of living is eroding our household budget. Every cost is going up and we are looking for ways to save on groceries, phone plans, petrol, electricity, insurances and everything else,’ he said.

‘There is no line in the household budget that is hurting borrowers more than the home loan. Nor is there one that has the potential for greater savings.’

‘The $500,000 home loan will be up by $12,000 this coming year.

‘That $12,000 increase is the equivalent of your annual home insurance, car insurance, electricity bills, home internet and mobile phone plan.

‘It underlines which expense is the real big picture for your finances.’

Key Takeaways

• Karl Stefanovic has unleashed on the ‘greedy’ big banks after the RBA issued a ninth consecutive interest rate hike.
• NSW Premier Dominic Perrottet accused banks of ‘double standards’ over recent rate rises.
• The change is expected to hit those with home loans hard, with expected interest rate hikes said to push an extra $12,000 towards Aussies already struggling to make ends meet.
• The RBA also admitted further rate hikes are on the horizon.

And in case you’re hoping that this will be the last of rate hikes to come, the RBA said in a statement announcing the hike that more will be needed to tamp down on soaring inflation.

‘The Board’s priority is to return inflation to target,’ the RBA said.

‘High inflation makes life difficult for people and damages the functioning of the economy. And if high inflation were to become entrenched in people’s expectations, it would be very costly to reduce later.’

‘The Board is seeking to return inflation to the 2–3 per cent range while keeping the economy on an even keel, but the path to achieving a soft landing remains a narrow one.

‘The Board expects that further increases in interest rates will be needed over the months ahead to ensure that inflation returns to target and that this period of high inflation is only temporary.

View attachment 13084

The RBA has raised interest rates consistently since May 2022. Image Credit: Seniors Discount Club

‘In assessing how much further interest rates need to increase, the Board will be paying close attention to developments in the global economy, trends in household spending and the outlook for inflation and the labour market.

‘The Board remains resolute in its determination to return inflation to target and will do what is necessary to achieve that.’

Er… with what’s looming ahead, you might be interested in how to shop smarter at the grocery store.

What are your thoughts on this most recent interest rate hike by the RBA? Do you share Karl’s views, or do you agree with the central bank that this is necessary to control inflation?

And in the meantime, what adjustments will you make, if there are any, to the anticipated effects of the development?

Tell us your thoughts below!

Source: YouTube/ABC News Australia​

It seems very advantageous for the banks at the expense of the vulnerable. Banks don't seem to be held accountable for their actions. They grant loans based on a borrowers income and then raise the repayments. The borrower has no recourse while the the banks profit from distress they cause. Banks should be held accountable to the borrower and instead of an interest rate just being passed on, a reassessment of a borrowers ability to repay should be made. It might be the only way to pull in inflation but should it be at the cost of making a choice between eating or which bill to pay for those unable to absorb the increases?

 

[TomDevine55]

It seems very advantageous for the banks at the expense of the vulnerable. Banks don't seem to be held accountable for their actions. They grant loans based on a borrowers income and then raise the repayments. The borrower has no recourse while the the banks profit from distress they cause. Banks should be held accountable to the borrower and instead of an interest rate just being passed on, a reassessment of a borrowers ability to repay should be made. It might be the only way to pull in inflation but should it be at the cost of making a choice between eating or which bill to pay for those unable to absorb the increases?

I agree about the banks, however people have to take responsibility for their own actions. No one forced them into a loan, your actions, your responsibility.

 

[Jan S]

It's a fact of life these days — when the Reserve Bank of Australia speaks, it’s to announce an interest rate hike. This often signals tougher days ahead for, at least in terms of finances, for everyday Aussies and seniors across the nation.

Just recently, RBA Governor Philip Lowe released a statement outlining that the bank would be raising interest rates by another 25 basis points (0.25 per cent).

This brings the current target cash rate by the central bank to 3.35 per cent after nine straight months of increases — the last of which was another 25 basis point (or 0.25 per cent) hike last December at 3.10 per cent.

Unfortunately, along with the hike comes a slew of problems for retirees, homeowners, investors with mortgage debt, and those who depend on their savings with banks like ANZ and NAB set to reflect the change in monetary policy.

Today show host Karl Stefanovic, perhaps among the many exhausted from yet another sign of belt-tightening, unleashed an impassioned and scathing rant towards the big banks and the RBA.

'I’m completely off the RBA and the big banks this morning… Hard-working Australians are being let down,' Stefanovic bluntly stated during the first hour of the show on Wednesday.

View attachment 13057

Today host Karl Stefanovic had some choice words for banks after the RBA announced the ninth straight interest rate hike. Image Credit: YouTube/Test 5

He then continued his impassioned attack against the major banks, alluding to their community-focused image as a giant farce.

'What about our banks this morning? Our kind-hearted, community-focused banks,’ he said.

‘You’ve all seen the ads, “We care about you, we see you.”’

'But how much do they really care? Do you remember during the pandemic when we had rate cuts, the banks seldom passed them on, and now they‘re like greedy moths to the flame, eating away at your savings, eating into your standard of living, eating into your future? They should be ashamed of themselves.'

Stefanovic's comments echoed the views of Nick McKim, Treasury spokesman for the Greens, who had earlier stated that the RBA was ‘willing to smash Australia into recession’ with its pro-rich policy.

The NSW Premier, Dominic Perrottet, also shared his distaste at the banks' decision to raise interest rates, claiming it would 'hurt household budgets' and referring to the banks' 'double standards' when it came to rate hikes in the past.

‘I was Treasurer of this state for five years. During some of the darkest days in the pandemic when the Reserve Bank was cutting rates,’ he said.

‘Only on one occasion did the banks pass that rate cut on in full, and on another occasion, they didn’t pass it on in full.’

‘They’re very quick to raise rates but not very quick to cut them.’

Source: YouTube/Test 5​

Initial reports said that while NAB and ANZ announced an increase in rates, NAB won’t be passing the change on to savings clients for the time being, while ANZ Plus Save account holders will now be seeing a 4 per cent interest rate.

Steve Mickenbecker of Canstar expects this most recent rate hike to hit many Aussies already reeling from high costs of living.

‘The increased cost of living is eroding our household budget. Every cost is going up and we are looking for ways to save on groceries, phone plans, petrol, electricity, insurances and everything else,’ he said.

‘There is no line in the household budget that is hurting borrowers more than the home loan. Nor is there one that has the potential for greater savings.’

‘The $500,000 home loan will be up by $12,000 this coming year.

‘That $12,000 increase is the equivalent of your annual home insurance, car insurance, electricity bills, home internet and mobile phone plan.

‘It underlines which expense is the real big picture for your finances.’

Key Takeaways

• Karl Stefanovic has unleashed on the ‘greedy’ big banks after the RBA issued a ninth consecutive interest rate hike.
• NSW Premier Dominic Perrottet accused banks of ‘double standards’ over recent rate rises.
• The change is expected to hit those with home loans hard, with expected interest rate hikes said to push an extra $12,000 towards Aussies already struggling to make ends meet.
• The RBA also admitted further rate hikes are on the horizon.

And in case you’re hoping that this will be the last of rate hikes to come, the RBA said in a statement announcing the hike that more will be needed to tamp down on soaring inflation.

‘The Board’s priority is to return inflation to target,’ the RBA said.

‘High inflation makes life difficult for people and damages the functioning of the economy. And if high inflation were to become entrenched in people’s expectations, it would be very costly to reduce later.’

‘The Board is seeking to return inflation to the 2–3 per cent range while keeping the economy on an even keel, but the path to achieving a soft landing remains a narrow one.

‘The Board expects that further increases in interest rates will be needed over the months ahead to ensure that inflation returns to target and that this period of high inflation is only temporary.

View attachment 13084

The RBA has raised interest rates consistently since May 2022. Image Credit: Seniors Discount Club

‘In assessing how much further interest rates need to increase, the Board will be paying close attention to developments in the global economy, trends in household spending and the outlook for inflation and the labour market.

‘The Board remains resolute in its determination to return inflation to target and will do what is necessary to achieve that.’

Er… with what’s looming ahead, you might be interested in how to shop smarter at the grocery store.

What are your thoughts on this most recent interest rate hike by the RBA? Do you share Karl’s views, or do you agree with the central bank that this is necessary to control inflation?

And in the meantime, what adjustments will you make, if there are any, to the anticipated effects of the development?

Tell us your thoughts below!

Source: YouTube/ABC News Australia​

 

[Jan S]

We have our daughter, a single parent of three, in our investment property. She is paying a reasonable rent, however, with the interest rate hikes we are now having to pay an extra $1350 per month out of our self funded pension, plus all usual extras, for them to live there. We‘ e been forced to put the house on the market and, since she has been unable to get another rental due to that crisis for over a year, the family is having to live with us. Not what anyone wants, but bank won’t lower the interest rate, and at our age can’t take advantage of refinancing to reduce it by moving banks, not to mention fees to do so. Perfect Storm… one less investment property for lease.

 

[Rainy]

We have our daughter, a single parent of three, in our investment property. She is paying a reasonable rent, however, with the interest rate hikes we are now having to pay an extra $1350 per month out of our self funded pension, plus all usual extras, for them to live there. We‘ e been forced to put the house on the market and, since she has been unable to get another rental due to that crisis for over a year, the family is having to live with us. Not what anyone wants, but bank won’t lower the interest rate, and at our age can’t take advantage of refinancing to reduce it by moving banks, not to mention fees to do so. Perfect Storm… one less investment property for lease.

My heart goes out to you. Maybe ask the bank to waive or halve their fees. Hope all goes well.

 

[Jan S]

My heart goes out to you. Maybe ask the bank to waive or halve their fees. Hope all goes well.

Spent three months trying to jump through Bankwest’s hoops to reduce repayments. We pay a higher interest rate for our variable loan than any one we know.

 

[RTS]

Inflation is being fuelled by Cole's and Woolworths raising prices well beyond the quoted rate of about 7%.
The RBA caused a recession (depression) in the late 1980s by raising interest rates to 18%, citing inflation. Many people lost their homes and investors stepped in to buy up cheap properties. It seems like they are again all working together again to deprive the people of Australia, and destroy the lives of hard-working young who have large mortgages.
The percentage r of rental properties, vs homes owned, has never been higher in Australia.
After this latest fiasco expect that percentage to rise even higher.