Rate rise a red light for excess debt

Infochoice general manager Denis Orrock said the Reserve Bank’s decision to increase interest rates was not for the benefit of the property market but a red light for personal debt and overspending. “The RBA is most concerned about Australians as a whole continue to spend without the means to support that spending … Australian consumers need to get their personal debt and their consumption under control,” Orrock said. Dun & Bradstreet, a credit reference company, said they would expect the number (of bad debts) to increase as interest rates go up.

Advertisement