WANGARATTA mortgage holders have been hit with yet another 0.25 per cent interest rate hike following the Reserve Bank's cash rate increase to 4.35 per cent on Tuesday. The average variable rate home loan with the big four banks is 7.21 per cent, making it even harder for lenders to keep up with expenses. Hume Bank CEO, Stephen Capello said he wasn’t surprised by the increase, with the majority of economists predicting the move after the latest inflation data and other economic indicators that came in above expectations. “High inflation was the main talking point on Tuesday," he said. "We saw in the latest data released that inflation was 5.4 per cent annually, which was down from the 7.8 per cent high, but still above the RBA's band of 2 to 3 per cent - but it isn’t the only factor. “No one can deny inflation is hurting people and we see this impacting confidence levels too with the latest Consumer Confidence Index that Westpac issues down to a figure close to its worst level since the pandemic in 2020.” “So, we now have sustained weakness in consumer sentiment which is not good for anyone.” Mr Capello said it was difficult to say if rates will steady or not and it will clearly depend on the latest economic data, but irrespective he thinks everyone is hoping for a pause. He said people who are struggling with their mortgage or loan repayments due to this latest increase should in the first instance reach out to their financial institution and talk to them about what options they have available. "If they’re not providing them with options that meet their needs, maybe shop around, or speak to your local bank,” he said.
