Reserve Bank rate hold sparks fears of future hikes for borrowers

DAILY TELEGRAPH FEATURE

The wait for interest rate relief will go on for borrowers, after the Reserve Bank of Australia (RBA) chose to hold rates at 3.60 per cent in its final cash rate call of the year. The latest hold decision means the central bank has now left rates unchanged for three consecutive cash rate calls, last cutting them in August this year with a 0.25 per cent drop.

Pressure is mounting on borrowers as rates hold steady and underlying inflation accelerated to 3.0 per cent for the September quarter, hitting the top of the RBA’s 2–3 per cent target band.

The cost of borrowing and rising inflation are putting pressure on many households, including Mosman family Chris and Deb Walton and their five children.

“The cost of living has been an ongoing challenge for many years because I’ve got a large family, so there’s a lot to take care of, you have to prioritise and make choices about what you do have and what you go without. We’ve certainly had to make those.” Mr Walton said.

This article originally appeared in the Daily Telegraph. To read the full story, visit the Daily Telegraph website.