RBA cash rate rises to 15-year high as consumer confidence crashes to record low
Consumer confidence fell to 67.1 points, its 10th-lowest reading since 1973, after the RBA raised the cash rate to 4.6 per cent.
The Reserve Bank raised the official cash rate to 4.6 per cent, the highest in 15 years, triggering a sharp drop in consumer confidence. The ANZ-Roy Morgan consumer confidence survey showed the index slipped 3.4 points to 67.1, marking its 10th-lowest reading since 1973.
Households with an average mortgage of $731,000 now face an extra $121 monthly repayment, totalling $475 more per month across all four rate rises this year. Renters and mortgaged households suffered the worst, with renters' confidence falling 6.1 points.
RBA Governor Michele Bullock warned it could take a recession to control inflation. Major banks predict another rate hike in November, which would push the cash rate to 4.85 per cent, its highest since 2008.
Households expect their finances to worsen further over the next 12 months.
- 4.6%
- Current cash rate
- 67.1 points
- Confidence index
- $731,000
- Average mortgage
- $121
- Extra monthly cost per household
Why it mattersLower confidence means households will cut spending and may struggle with debt, potentially tipping the economy toward recession.
AustraliaAustralians with mortgages face steeper monthly payments and tighter budgets, while inflation erodes wages and the outlook for work remains uncertain.
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