Rising interest rates and soaring inflation are eroding consumer confidence in the lead up to the festive season, with Compare the Market analysis showing 40 per cent of people plan to spend less this Christmas than in previous years.
More oversized RBA cash rate hikes seen unlikely for now
A surprise slowdown in the pace of rate hikes from the Reserve Bank of Australia announced after its last rate hike on October 4 will offer some relief for mortgage holders, with the central bank now likely to stick to smaller increases.
Some lenders have wasted no time passing on Tuesday’s 25 basis point interest rate hike, with Westpac the first of the big four to announce lifted rates for home loan and savings customers from October 18.
The Commonwealth Bank of Australia, National Australia Bank and the ANZ also confirmed on Tuesday they were lifting their rates by the same amount on October 14.
The 0.25 percentage point lift is the sixth rate hike in a row and brings the cash rate to 2.6 per cent.