Australian mortgage holders will be forced to tighten their belts this Christmas as the Reserve Bank hikes interest rates for the eighth month in a row.

A 25-basis point cash rate increase to 3.1% means those with a typical $750,000 mortgage are now paying over $1400 more per month since rates started rising in May.

Shadow Treasurer Angus Taylor said more than three million Australian families with a mortgage are starting to feel the impact of cash rate rises since May.

“We know rate rises take some time to flow through to mortgage holders and these steady increases will add further pressure to household budgets already under strain from the rising cost of groceries, fuel and energy bills,” Mr Taylor said.

“Many Australian families will be struggling this Christmas and the pain is only set to deepen into the New Year with thousands of fixed rate loans set to rollover from February.

“What’s become abundantly clear is the Labor Government is failing to tackle inflationary pressures at the source.

“Whether it is their failure to resolve energy price pressures or failing to rein in spending, the inaction of this government is increasing pressure on the budgets of hardworking Australian families.

“During the election campaign, the Prime Minister promised Australians cheaper mortgages, cheaper power prices and that he would take responsibility. Instead, mortgages are more expensive to service, power prices are skyrocketing and the Prime Minister’s response is to blame everyone but his Ministers.

“Anthony Albanese said he wouldn’t waste a day but he has wasted six months.

“All Australians want from the government this Christmas is a plan to deal rising cost of living which is now very real and painful. Instead, all they're getting are excuses and more forecasts. Hardworking Australians deserve better.”  

ENDS.