A financial assistance program in Whittlesea is booking out one month in advance as rising interest rates put pressure on family budgets.
Whittlesea Community Connections emergency relief services manager Ginette Bequely said continuous rate rises were adding to the lingering pressures of the pandemic.
“The financial assistance program we provide is booking out a month ahead, that’s just how high the need is,” Ms Bequely said.
In early September the Reserve Bank of Australia raised the cash rate by 50 basis points to 2.35 per cent and interest rates on exchange settlement balances went up by 50 basis points to 2.25 per cent.
RBA governor Philip Lowe said the RBA anticipates inflation will peak in the December quarter of 2022 and eventually stabilise back to 2 to 3 per cent. Inflation reached 6.1 per cent in June.
“Higher inflation and higher interest rates are putting pressure on household budgets, the full effects of higher interest rates yet to be felt in mortgage payments,” Dr Lowe said.
These forecast rate increases are concerning for Whittlesea Community Connections, as its services support those experiencing hardship.
“It’s going to place additional financial stress and pressure on homeowners, so we definitely anticipate more people are going to seek support that are under mortgage stress,” Ms Bequely said.
