Reserve Bank branded ‘out of touch’ after another rate rise

The Victorian Council of Social Services says the Reserve Bank of Australia (RBA) is “out of touch” with the concerns of working families after lifting interest rates for a fifth consecutive month.

The rate was lifted by 50 basis points to 2.35 per cent on Tuesday.

It means those with a $750,000 mortgage will have to pay an extra $200 a month.

CEO of the Victorian Council of Social Services, Emma King, told Tom Elliott the RBA is overestimating the amount of savings Australians have.

“When I look at their assumptions around how much people have got in savings, I don’t think it reflects reality,” she said on 3AW Drive.

“It certainly doesn’t reflect a listening tour that we’ve just held around the state, working with local communities who have all raised with us the impact of cost of living and the increasing pressure and distress that this is causing them.

“And we’re hearing this around the state, and we backed it up with phone polling that said the same thing.”

PRess PLAY below to hear Ms King’s concerns about rising interest rates

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