From the squeeze... to the crunch
From the squeeze... to the crunch
18 January 2023
New forecasts from Westpac suggest household finances will come under increasing pressure this year -- on several fronts.
Inflation remains high, borrowing costs are continuing to be pushed up by the Reserve Bank's hikes to the Official Cash Rate, and the value of property assets is continuing to drop.
Senior economist Satish Ranchhod says for many families, the pain in the back pocket will become much more intense over the next 12 months.
He says more people will have to re-fix their mortgages at much higher rates, which will take a bite out of household's disposable income, and slow down spending.
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