Interest rate hikes may send about 200,000 more households into mortgage stress, says analyst

The Reserve Bank of Australia’s raising of the cash rate to 1.35% could send an estimated 200,000 households into mortgage stress, an analyst says. Photograph: Dan Himbrechts/AAP

Many homeowners may be forced to tighten their belts after the Reserve Bank of Australia lifted the cash rate by half a percentage point, sending an estimated 200,000 households into mortgage stress.

On Tuesday, the RBA raised the official cash rate 50 basis points to 1.35% – the highest since May 2019.