Interest rates putting a dent in average Aussie budgets

There is no relief in sight for West Australian homeowners, with Governor Michelle Bullock saying interest rates were unlikely to fall soon after the Reserve Bank paused rates again.

The RBA left its benchmark interest rate unchanged at 4.35 per cent on Tuesday.

The rate has remained the same since November 2023, which is further putting pressure on WA families struggling with the cost of living.

For Matthew and Jessica Sexton, who have three children, their plans of renovating and selling their home has been dashed as a result of the continuing rates pause.

“I am not able to do any renovations, sell the house, or buy a new house,” Mr Sexton said.

“Certainly, we have not been able to put much away for savings and for holidays because it is all going back onto the house and mortgage.”

He said if the rates went down he could spend more on his children — Rhylie (10), Archer (8), and Isla (3).

“If it went down we could do more family vacations, the kids could do more sports as well, and we could afford school fees,” Mr Sexton said.

“School fees have not gone up but the money we have for school fees is now going towards the cost of living and interest rates.

“I am also the only one working as Jessica is looking after the kids, so that obviously plays a part as well.”

Ms Bullock said rates would likely not be reduced in the near term.