The RBA looks set to reverse course, with economists now predicting a rate hike as soon as February 3rd, following higher-than-expected inflation data.
While the central bank cut rates three times last year, stubborn inflation is forcing its hand. The big question is: can stressed borrowers handle it?

Key Points from the Analysis:

* A single 0.25% hike could push 1.3 million Australian households into mortgage stress.
* Economists are divided: some urge immediate action to curb inflation, while others warn hiking too fast risks "snuffing out" consumer spending and economic growth.
* The RBA faces a tough communication challenge, trying to explain why rate rises are necessary to people struggling with high living costs and massive housing debt.

#RBA #InterestRates #Inflation #AusPol #CostOfLiving #MortgageStress #AustralianEconomy

abc.net.au/news/2026-01-29/inf…

Rate hike pain is on the way for Australian borrowers, but will they be able to tolerate it?

The Reserve Bank cut interest rates three times last year, betting inflation would moderate. But that hasn't happened, and now a rate hike looks likely next month — and possibly another in May.

^{Nassim Khadem (ABC News)}