RBA Interest Rate Hike Puts 1.79 Million Households at Risk of Mortgage Stress

Reserve Bank of Australia governor Michele Bullock is expected to raise interest rates for the fourth time this year on September 29, despite warnings from industry experts that another hike will further strain household budgets.

The move would increase the cash rate from 4.35% to 4.60%, adding $113 a month to the average new home loan of $731,000, according to calculations by One News Australia.

Bullock has stated that an unemployment rate between 4.5% and 5% would help ease pressure on inflation, but this would mean around 63,000 more Australians out of work.

The Reserve Bank board meets again in November and December, with major lenders ANZ and NAB warning of another interest rate hike at that time.

Anthony Albanese's Labor government is being criticized for allowing households to bear the brunt of economic mismanagement through job losses and higher loan repayments.