Arabic version: رفع أسعار الفائدة يتردد صداه في كأس ملبورن

According to ABC News, conversations at the Melbourne Cup showed how a decision to lift interest rates was affecting Australians in sharply different ways. The race day crowd was surrounded by discretionary spending, with busy bars and festivities, but mortgage costs and affordability remained a concern for many attendees.

Anthony, attending with his partner, said rising rates meant they would not be buying a home. He said the cost of living was already difficult and that saving for a house had become “almost unattainable”. Instead, the pair decided to travel, having returned from Europe and planning to spend the Australian summer snowboarding in Japan.

Christine, who has a mortgage, urged the Reserve Bank’s Monetary Policy Board to stop raising rates. ABC News reported that around one-third of Australians have housing debt, with many home loans on variable rates. Another one-third rent, and some rental properties are subject to mortgages. For people who have paid off their homes, however, higher rates can increase returns on deposits and savings.

Retiree Craig, who has paid off his house, said he considered the burden on mortgage holders unfair. He called for more action from the federal government to lower inflation, though ABC News noted that alternatives to rate rises can be slow, difficult, politically risky and may have unintended consequences. NAB chief executive Andrew Irvine said 2027 would be a “challenging year” for customers, adding that many were resilient but “might not be having much fun”.