Rate hike adds $6,450 a year for typical mortgage holders
Five interest rate rises have failed to bring inflation down, leaving households paying thousands more in repayments.
The Reserve Bank's expected rate rise to 4.85 per cent will add another $6,450 a year in repayments for a typical household with a $700,000 mortgage, says David Koch, economic director at Compare the Market.
Five rate hikes have failed to bring inflation back within the RBA's target range, Koch told Sunrise, meaning monetary policy has not worked. Koch called on Australians to stop accepting price rises.
Koch urged people to demand governments and businesses prove they are fighting inflation. Consumers should challenge businesses that increase prices more than inflation.
Governments should limit fee and wage increases to 3 per cent while inflation remains above target. Households are understandably frustrated and doing the heavy lifting alone, he said.
- 4.85 per cent
- New cash rate
- $6,450
- Annual cost increase
- $700,000
- Mortgage amount
- 5
- Rate hikes without effect
Why it mattersAustralian families paying mortgages will face thousands of dollars in extra repayments from the expected rate rise.
AustraliaAround 2 million Australians with mortgages will see their repayments rise further if the RBA lifts rates as expected, squeezing household budgets across the country.
✓ Claims checked against the source and corrected before publish. checked 2 h ago
