The Reserve Bank of Australia governor Philip Lowe has been the man of the hour for some months now. Ever since he prognosticated no rise in interest rates until 2024, then very soon after followed that statement up with 12 (and possibly counting) rate rises, Aussies have been hanging on (and critiquing) his every word. The latest cash rate rise will mean thousands of households will need to find hundreds or thousands of dollars in mortgage repayments more per month in June 2023, than they had to in May 2022.
Mr Lowe’s response to Australians balancing the cost of living and staving off mortgage arrears?
“If people can cut back spending, or in some cases find additional hours of work, that would put them back into a positive cash flow position,” he said.
This simple solution comes on the back of his brilliant tip last week, when he told Senate Estimates that “Australians may need to find housemates, or stay living with their parents, to bring rent prices down”.
Has Mr Lowe lost the plot? Or is this sound advice? Would you be happy with your kids and their families moving back home? How did you manage in the days of 18% interest rates? Why not share your tips here so we can write an article aimed at helping older Australians still paying off a mortgage, as well as younger families get through these tough times?
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