Aussies Feel Pinch of Interest Rate Hike

Shane McClymont and his wife are worried about affording their son's birthday dinner, a tradition where the kids get to choose the takeaway. This concern stems from the latest interest rate hike by the Reserve Bank of Australia, which has raised its key rate from 4.35% to 4.6%, its highest level since 2011.

For McClymont, who bought his house in Sydney's western suburb of Doonside two decades ago, the hike is 'daunting'. He pays $625 a week in repayments on a loan balance of $345,900, and the rate increase would add about $119 to his monthly payments.

McClymont feels 'robbed' by the constant cycle of pay rises being taken off by bill increases. His wife has had to go back into full-time employment due to the rising costs, which have left them struggling to make ends meet.