Resilient Aussies used the pandemic to brace for higher interest rates

Aussies are more exposed to rising interest rates due to mostly variable rate mortgages, but have managed to pay off bills despite predictions of financial distress, according to RBA assistant governor Christopher Kent. Mortgage arrears rates remain low, with borrowers using savings buffers to offset increased mortgage payments. The RBA credits low unemployment and regulatory measures for helping homeowners maintain their financial position, with major banks reporting that the average mortgage holder is ahead on payments and experiencing minimal financial hardship despite higher interest rates.

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