Low income and younger households will bear the brunt of the Reserve Bank of Australia’s expected 10th straight interest rate rise this week, and they will be forced to slash spending as their disposable income shrinks.
Analysis by economist Tim Toohey suggests the discretionary cashflow for the bottom 20 per cent of income earners will fall sharply by about 24 per cent in 2023.
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John Kehoe is economics editor at Parliament House, Canberra. He writes on economics, politics and business. John was Washington correspondent covering Donald Trump’s first election. He joined the Financial Review in 2008 from Treasury. Connect with John on Twitter. Email John at jkehoe@afr.com
