Protests erupt outside the Reserve Bank headquarters as demonstrators chant ‘tax the rich’ in the latest sign of mounting anger against steep interest rate hikes.
- Protesters gather outside RBA headquarters in the rain
- Singing ‘tax the rich’ just hours before the cash rate announcement
Protesters rallied to demand more cost-of-living relief ahead of the latest Reserve Bank cash rate decision.
Several dozen people, mostly college students and youth, gathered on Martin Place in front of the RBA headquarters.
The group was not deterred by the rainy weather or the lack of umbrellas, holding signs and singing.
Some held signs reading ‘Notice to Eviction’ and ‘Can I be your roommate Phil?’, referring to RBA Governor Phillip Lowe’s comment that those struggling with rising housing costs should invite others to live with them to keep costs down..
A group of protesters gathered outside the RBA ahead of today’s rate announcement chanting ‘taxes for the rich’ as tensions rise between the central bank and Australians.
They were demanding more support from the government as the cost of living rose, mainly around housing and rent issues.
“We have a housing solution: tax the rich,” the group was heard singing.
The protests come as the RBA kept the policy rate at 4.1 percent.
In the RBA’s months-long mission to raise the cash rate to fight inflation, it is only the second time the hikes have been halted.
In his monthly statement, Lowe acknowledged that rates had risen 4 percent since May 2022.
“Higher interest rates are working to establish a more sustainable balance between supply and demand in the economy and will continue to do so,” he said.
‘In light of this and the uncertainty surrounding the economic outlook, the board decided to hold interest rates steady this month.
“This will give some time to assess the impact of interest rate increases to date and the economic outlook.”
There are fears for mortgage holders after months of rate hikes as two in five Australian borrowers struggled to repay their home loan in June, the highest ratio since comparison site Finder began running research on 2019.
One of the signs read ‘Can I be your roommate, Phil?’ referencing RBA Governor Phillip Lowe’s (pictured) comment that people should find roommates to reduce housing costs
Just hours after the protest began, the RBA announced that the cash rate would remain at 4.1 percent.
There’s more bad news for homeowners on a budget, too, as one in five mortgage holders have been affected when they tried to refinance their home in the past 12 months.
That’s an estimated 652,260 borrowers who can no longer switch banks, with half of those mortgage holders turned away because they don’t make enough money according to Finder’s head of research, Graham Cooke.
“Thousands of homeowners are sinking under the weight of their home loan but have nowhere else to go,” he said.
“Lenders are turning away borrowers in droves who can’t comfortably afford a new loan even though it’s more affordable than their current one.”
