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The Age

National Agenda

RBA bemoans cautious homeowners

The Reserve Bank’s efforts to boost the economy through interest rate cuts is being undermined by “cautious homeowners afraid to reduce their monthly repayments”.

  • Lower interest rates are also aimed at reducing the cost of borrowing for the business sector  
  • The RBA is depending on rate cuts flowing through businesses and households into the broader economy  
  • But households have a “reduced appetite for debt” and are more likely to leave their repayments unchanged, even in the face of lower interest rates 


Despite government intervention, economic uncertainty remains among Australian consumers. This is further impacted by static wage growth, high entry to the housing market and rising cost of living pressures. Added to this is ongoing lack of trust in financial services and banks, creating a difficult environment for government (and brands) to get the public to spend.