Henry Russell: ANZ Economist on the impact of increased mortgage interest rates

It’s being predicted that the household budgets for mortgage holders will be squeezed further in 2024. 

Those on extremely low interest rates in 2019 are turning over to new rates now. 

A Reserve Bank report says the average household will spend about 18% of their income on interest payments alone by mid-next year. 

ANZ economist, Henry Russell, told Kate Hawkesby that it's not unexpected, and the Reserve Bank needs to see demand in the economy slow to get on top of inflation. 

He says there's still many households with 2% or 3% interest rates who'll face a tough adjustment when they rollover to six or seven percent. 

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