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Ben Udy, the lead economist at Oxford Economics Australia, has issued a cautionary note regarding today’s household spending figures, suggesting that the Reserve Bank of Australia (RBA) is likely to increase interest rates this afternoon.
Economist Bui forecasts that each rate hike will result in an additional $120 on average for monthly mortgage repayments.
Both experts anticipate that financial strains on households are unlikely to diminish soon, with the upcoming months posing even greater challenges for Australians.
“We’ve seen global oil prices surge to new heights, which will soon translate into increased costs for fuel, transportation, fertilizers, and food,” explained Udy.
Bui further commented, “The second quarter will be particularly challenging for average households. The spike in fuel prices is expected to have ripple effects, increasing costs in other sectors like construction, manufacturing, and food production, especially given the ongoing disruptions at the Strait of Hormuz.”