Rate Increase Hits Home

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The New South Wales Business Chamber says this week’s interest rate rise is just another blow for families already struggling.

The Commonwealth Bank has moved to lift rates by 0.45 percentage points above the 0.25 rise decided by the Reserve Bank.

The Chamber’s regional manager, Kellon Beard, says he cannot see any real reason why the Commonwealth needed to lift the rates by so much.

He says struggling local families will be hit hard by the rate rise.

“I think it’s going to have a big impact on families because cost of living has gone up,” he said.

“We’ve had recently rises in electricity which is impacted on them, and this mortgage increase is just another blow to them.”

Mr Beard says the increase will also hurt businesses.

“I think people will look seriously at not putting anyone else on and trying to deal with what their increase in business, if they have any.”

“They will use their current staff, instead of expanding because of the increase in interest rates.”

“It’s going to be very hard going forward.”

“The cost of living is going up, interest is going up, and the opportunity to earn more income is just not there.”

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