RBA Rate Hike Puts Strain on Households and Small Businesses

CPA Australia warns that the Reserve Bank of Australia's (RBA) decision to increase interest rates to a 15-year high will strain households and small businesses.

The RBA's move comes at a time when businesses and households are already grappling with ongoing inflation, escalating operating costs, and weakened consumer demand.

CPA Australia Business Investment lead Gavan Ord noted that the rate rise is 'a further setback for borrowers and businesses navigating an increasingly difficult economic climate.'

The interest rate increase will put pressure on small businesses, which are already facing higher borrowing costs, persistent inflation, volatile fuel prices, rising operating expenses, and subdued consumer demand.