Borrowers Hit Again

Perth, March 17: The Reserve Bank of Australia has lifted the cash rate to 4.10% in March, marking its second consecutive increase.
In Finder’s latest RBA Cash Rate Survey™, 37 experts and economists shared their views on future rate moves and the broader state of the economy.
Even before the recent escalation involving Iran shifted expectations late last week, most panellists — 86% (32 out of 37) — were already forecasting another rate rise within the next two months.
Finder head of consumer research Graham Cooke said the latest increase would be another blow for millions of households already under financial pressure.
“This is a tough blow at a time when Aussie families are already feeling the pinch from a volatile global market.
“Between the rising cost of fuel and now higher mortgage repayments, financial safety nets could be pushed to breaking point.
“The RBA has decided that the risk of runaway inflation is a bigger threat than the immediate strain on budgets.
“How long this conflict continues will determine the full impact on Aussie households. Homeowners should brace for more potential pain to come,” Cooke said.
Finder estimates the average Australian borrower will now pay $118 more per month, or $1,416 more per year, than last month.
Compared with January, before the RBA began raising rates again, the average borrower is now paying $2,805 more each year.

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