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6 things Aussies are cutting back on after the RBA rate hike

The RBA hiked interest rates to 3.85 per cent in May, putting more financial pressure on households.

Eliza Bavin
·Personal Finance Editor
Updated ·2-min read
A composite image of Australian money and a group of people sitting at an outdoor venue to represent the cost of rising inflation.
High inflation means Aussies are having to cut back to save some cash. (Source: Getty)

The Reserve Bank (RBA) got back on the horse trying to fight inflation by hiking interest rates another 0.25 per cent this week, marking the 11th hike in 12 months, and Aussies are doing it tough.

Aussies will now find themselves forking out another couple of hundred bucks or so as a result, and a whopping 94 per cent of Aussies were already concerned about keeping up with paying for life essentials, according to Mozo research.

Mozo’s consumer expert, AJ Duncanson, said the research found the majority of Aussies were finding it difficult to make ends meet.

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“Inflation has slowed, but mums and dads are suffering,” Duncanson said.

Mozo investigated where the cutbacks were going to be, as the cost of living and interest rates created tighter budgets.

“Perhaps it is easy to think we are doing OK if the things you would have to cut back on are getting someone else to cook for you, or entertainment, but our survey shows that nearly one in five of us would have to reduce our grocery shopping,” Duncanson said.

“That is serious, and something the treasurer needs to be thinking carefully about in his budget next week.”

Mozo’s finance expert, Peter Marshall, said Aussies needed to make sure they were looking after every dollar they could.

“The mortgage, loan, and insurance markets are competitive right now. And for those of us that can save, there are some excellent rates in that market too,” Marshall said.

What are Aussies cutting back on?

Mozo research found the first things Aussies would cut back on if they had to were:

  • Eating out - 57 per cent

  • Takeaway - 50 per cent

  • Entertainment - 33 per cent

  • Clothing/footwear - 26 per cent

  • Food shopping - 18 per cent

  • Streaming services - 18 per cent

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