Original article by James Eyers
The Australian Financial Review – Page: 16 : 5-Jul-23

The Reserve Bank of Australia has signalled that further interest rate rises may be necessary in order to return inflation to its target range, after leaving the cash rate unchanged at 4.1 per cent on Tuesday. Households will face further financial pressure if there are more rate rises. Home loan borrowers will be particularly vulnerable, with research from Roy Morgan showing that 1.43 million mortgage borrowers are now at risk of mortgage stress; this is an increase of 627,000 in the last year. Roy Morgan estimates that an additional 51,000 borrowers would be at risk of mortgage stress if the cash rate is increased by another 25 basis points. A second rate rise of this size would put another 94,000 borrowers at risk of mortgage stress.

CORPORATES
RESERVE BANK OF AUSTRALIA, ROY MORGAN LIMITED