THE SQUIZ

The Reserve Bank board will decide whether interest rates are on the rise again when it meets today. Analysts are tipping another 0.25%, taking the official cash rate to a 10-year high of 3.6%, up from the 3.35% currently. If that happens, it’ll be the 10th consecutive hike as our central bank continues to battle inflation. It’s sitting at 7.4%, well above the 2-3% target range.

WILL IT EVER STOP?

Well, some economists say we’re in for another 2 rate hikes this year to take us to 4.2%, and others say that might not be the case as inflation eases. Treasurer Jim Chalmers reckons inflation peaked in December when it hit a 3-decade high of 7.8%. It’s terrific that inflation is coming down, but it also means Australia’s economic growth is slowing with figures out last week showing growth of just 0.5% between October–December. Senator Jacqui Lambie didn’t mince her words about the impact yesterday – she says Aussies need to be prepared for the worst. “I think that they are holding every penny they can. I have been brutally honest. I said, ‘Well, even if we don’t, at least be prepared’,” she said.

SO HOW ARE WE HOLDING UP?

It seems Aussies are worried about the rising cost of living pressures. Data from mental health service Lifeline shows a record 26,000 searches were made on its website for support in January 2023, while searches for help specifically relating to financial issues and homelessness rose by 49% between August and January. Supermarkets Coles and Woolworths have also noticed customers are “feeling the pain”, with an “extraordinary” spike in the sales of discounted/own brand items as shoppers hunt for bargains. For the more than 4.7 million Aussies receiving income support, help is coming with an indexation increase to payments from 20 March. “We want more money in the pockets of everyday Australians, so they can better afford essentials,” Social Services Minister Amanda Rishworth said yesterday.