Australians are feeling the pressure of interest rates that have surged over the past year, with household confidence as low as during the global financial crisis of 2008 and the depth of the Covid-19 pandemic.
(Bloomberg) — Australians are feeling the pressure of interest rates that have surged over the past year, with household confidence as low as during the global financial crisis of 2008 and the depth of the Covid-19 pandemic.
That’s according to Matt Comyn, chief executive officer of Commonwealth Bank of Australia, the biggest lender in the country. “Those with mortgages are bearing the brunt of monetary policy, but renters are also facing sharp increases,” Comyn told lawmakers during a parliamentary hearing Thursday.
He added that customers are curbing discretionary spending and dipping into their savings, echoing comments from counterparts at ANZ Group Holdings Ltd. and National Australia Bank Ltd. at the hearing Wednesday. Westpac Banking Corp. head Peter King is expected to appear later Thursday.
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Comyn said that a third of borrowers who bought their first homes during the pandemic have cut spending by 30% from a year ago. He added that the number of customers failing to make repayments is still low by historical standards.
“We are acutely aware that many Australians are finding it tough, household confidence is now as low as it was during” both the global financial crisis and the pandemic, he said.
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