Shoppers tighten purse strings
MARGIE SAVINS, of Shannon Brook, near Casino, said rising interest rates were already having an effect on her family's budget.
“It's just one more thing,” Mrs Savins said.
She runs a 170-hectare cattle farm with her husband.
Her family of five are already feeling the pinch from the dry weather and rising fuel costs.
“We are having to feed (the cattle) because there is no rain,” Mrs Savins said.
She will be adjusting the family's grocery budget to help make ends meet. “I will cut back on the little luxury items,” she said.
Last Tuesday, the Reserve Bank of Australia lifted the cash rate by 25 basis points to 3.25 per cent. Banks lifted their rates by 0.25pc within days of the announcement.
The move put an end to the lowest cash rate in 49 years.
Southern Cross University executive dean at the faculty of business and law Professor Mike Evans said while the trend for interest rates was up, there would not be a huge rise in the short term.
Prof Evans said big rises came when inflation was high, which currently it was not.