The RBA has increased the cash rate to the historical level to bring it to 4.35% after the last rate increase of 0.25% in the November 2023 board meeting. As a result majority of the low & middle income borrowers are struggling with their household budget.The main reason RBA has increased the rates so aggressively to a historic high, is to curtail the stubborn inflation numbers above their target band. The underlying message from RBA to the Australian people is pretty simple, curb your spending and rain in on the discretionary spending to not only bring the demand down, but inflation and subsequently the rates. When the rates rise they don’t only impact the borrowers but to the renters too as the land lords pass on the cost increases. So everyone is impacted by the rate rises and we are all in this together 🤝 whether you are impacted directly or not. We all need to take steps to respond to the changing landscape of the Australian economy & do our bit.

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