In short:
The Reserve Bank's fifth interest rate hike this year will create more stress for households.
asserted
hike → create → households
Those with large loan repayments, the unemployed and renters could struggle to stretch their budgets.
What's next?
The RBA has indicated it is still concerned about rising inflation, meaning further interest rate hikes cannot be ruled out.
uncertain
hikes → struggle → inflation
As a renter Laura Mayer is worried she won't be able to cope with Tuesday's Reserve Bank interest rate hike.
asserted
she → worry → hike
"For me, the fact of the matter is that my rent has gone up 32 per cent in a one-off increase this year," she said.
asserted
she → go → increase
Ms Mayer blames rising interest rates.
asserted
Mayer → blame → rates
The Reserve Bank raised the cash rate by a quarter of a percentage point for the fifth time this year on Tuesday, taking the cash rate to 4.85 per cent.
asserted
Bank → raise → cent
"If the landlords pass on the cost of any interest rate rise, I won't be able to absorb it and will have to move,"Laura Mayer said.
asserted
Mayer → pass → it
"The cost of housing is a constant state of stress for me, and it currently affects every aspect of my life.
asserted
it → affect → life
"I continually worry that I will be a lifelong renter, and I cannot see how it gets better without genuine government intervention."
asserted
it → worry → intervention
Bullock concedes the economy’s stressful
Reserve Bank governor Michele Bullock expressed some sympathy for those on the wrong side of interest rate hikes at Tuesday's press conference.
"The fact that we've had this massive shock has meant that we're poorer and that's what people are feeling," she said.
asserted
she → concede → what
New research from Canstar has found one in 10 mortgage customers will have trouble meeting their soon-to-be higher repayments, following the RBA's decision.
asserted
customers → find → decision
The interest rate comparison website surveyed borrowers, renters and those who own their own home outright.
asserted
who → survey → home
As many as 10 per cent of borrowers surveyed said they would be unable to meet the higher repayments if today's cash rate hike materialised, while a further 28 per cent said meeting the increase would not be easy.
asserted
meeting → survey → increase
The financial pain isn't limited to borrowers, with the majority (68 per cent) of renters saying they were concerned about the impact of today's rate hike on their rent or living costs.
asserted
they → limit → rent
'Almost like they don't care'
asserted
they → care → ?
Sixty-year-old-mortgage borrower Lina Pugliese's job was recently made redundant, making her budget squeeze extra tight.
She told the ABC finding work was getting "really tough".
asserted
work → make → ABC
"The buck stops with me," she said.
asserted
she → stop → me
"I can't get work.
asserted
I → get → work
I'm afraid to open my bank account because I don't want to see it going down."
asserted
it → open → account
She also expressed concern the Reserve Bank did not care about her financial position and was more intent on reducing inflation.
asserted
Bank → express → inflation
"There seems to be an indifference coming from the RBA — almost like they don't care," Ms Pugliese said.
asserted
Pugliese → seem → RBA
RBA wrestled with rate hike
Tuesday's RBA interest rates decision was a split one: six members voted to increase the cash rate target; three members voted to leave the cash rate target unchanged at 4.60 per cent.
asserted
members → wrestle → cent
The reason for this, Michele Bullock said, was that board members were conscious of economic stress emerging.
asserted
stress → say → this
"Those looking for a [rates on] hold [decision] were thinking that housing has reacted, the unemployment rate is drifting up … they felt that there were potential downside risks in these circumstances," she said.
asserted
she → look → circumstances
But most board members saw fit to hike interest rates, and there may be more to come.
uncertain
members → see → rates
"As a result, given the elevated near-term inflation outlook and the likely ongoing global sources of inflationary pressure, my base case is that the RBA has at least one more shot in the locker," Betashares chief economist David Bassanese said.
asserted
Bassanese → give → locker
In fact, two further rate hikes in the first half of next year can't be ruled out to ensure a decent slowing in domestic demand and containment of inflation expectations."
IT professional Stephen Macchia does not know what else he can cut back on to absorb higher mortgage repayments.
asserted
he → rule → repayments
"Our family has cut back as much as we can, stopped swimming and music lessons, purchase the cheapest variety of our regular food choices, we don't eat out or go on holidays — these increases are hurting,"he said.
asserted
increases → cut → holidays
"What does the RBA expect us to do as costs are out of our control — we are all price takers for fuel, insurance, and food.
asserted
we → expect → fuel
"
Signs of growing financial stress
The Reserve Bank's interest rate rise is tipping more Australians into financial distress, with calls about people missing mortgage repayments now making up a greater portion of calls to the National Debt Helpline.
Calls and chats to the National Debt Helpline reached 187,905 in the 12 months to the end of August 2026, up 11.76 per cent from 168,133 over the same period the year before, with a greater portion coming from people unable to make mortgage repayments or at risk of arrears.
asserted
portion → grow → arrears
More than 1.82 million borrowers could be in mortgage stress due to the Melbourne Cup Day rate rise, according to Roy Morgan data.
uncertain
borrowers → accord → data
On Monday Westpac reported that it offered 42,000 financial hardship assistance and disaster relief packages during the year.
asserted
it → report → year
Commonwealth Bank recently revealed in its financial results that the lender had "provided more than 147,000 tailored payment arrangements for customers in need of support".
asserted
lender → reveal → support
Vicki Staff works with Financial Counselling Australia (FCA) as the coordinator for the National Debt Helpline.
asserted
Staff → work → Helpline
Ms Staff said the latest data showed more than four in 10 callers were in paid employment demonstrating that having a job was no guarantee of financial security.
asserted
having → say → security
Further, mortgage stress was making up a bigger proportion of people who were contacting the helpline.
asserted
who → make → helpline
"We're hearing from people who've never had to ask for help before,"she said.
asserted
who → hear → help
"In the past where we've seen mortgage stress represent maybe 10 to 11 per cent of callers, we're now seeing it creep up to 14, 15 per cent of callers."
The Uniting Church has also seen a rise in people in need of financial assistance.
Spokeswoman Aileen Muldoon said most clients accessing Uniting's financial counselling services have household incomes below $50,000, but that "we are seeing more people in paid work whose income is no longer sufficient".
"This leads to debt hardship and housing insecurity with many people choosing to pay their bills so they can keep a roof over their heads and the lights on and go without essentials like groceries,"she said.
asserted
lights → see → groceries,"she
The Aporia
