With the Reserve Bank of Australia (RBA) tipped to deliver yet more interest rate pain,


The Reserve Bank has tipped to deliver even more paying for Aussies, with mortgage holders already paying almost $16 ,000 more a year than they were last May. Today Melbourne reporter Christina Hearn has more new data as revealed the country's financial misery has soared. 

Yeah, that's right, Carl. And it's going to come to no surprise to so many Aussies that have been telling us just how tough they've been doing it. But now the country's misery index, which tracks interest rates, inflation and unemployment, is just short of the mark that it was in the early part of the global financial crisis back in 2008. 

This according to economists from the University of Melbourne. But back in the GFC, the misery index jumped by about 62%. But last year, it soared by an astonishing 220%. Something that's really putting a lot of stress on family budgets is the car, running the car. 

According to the Australian Automobile Association, in Melbourne and Brisbane, per week the cost of running a car and transport costs is jumped by $34 to just over $500 per week. That all adds up to around about $26 ,000 a year just to run the car. Sydney remains the most expensive city when it comes to transport costs. 

So families are dealing with all of this and then, of course, possibly yet another interest rate rise tomorrow. Welcome back. You're watching today. The financial misery of Aussies is at its highest level since the global financial crisis. Amid growing concerns, the RBA will once again bump up the cash rate tomorrow. 

Joining us to discuss is Tasmania Senator Jackie Lambie and commentator Scott Emerson. Thanks so much for your time, Jackie. This is a grim reality. Are you surprised by it, though? No, not really, because you can see it out there on the ground. I just really hope that, you know, I've been saying for 18 months to people, make sure you're tight, you're built, only spend money where it needs to go. 

I sincerely am a bit concerned about, yeah, everyone needs wage rises. What does that look like? What is that going to do for spending and the inflation? I do think that we'll have another rate rise in the next week or two, and I think we will have a few more yet, and that's what I'm saying to everyone. 

I really, I don't think there is any brightness at the end of the tunnel just yet. We're certainly not out of this by a long shot. And that's the problem. You want to increase people's wages, but then how do you not drive up inflation at the same time? It's sort of this balancing act that is almost impossible to get right. 

Yeah, no, it is impossible to get right. It is tough times out there. Even, you know, we're still trying to work out, you know, people saying, I can't believe this, but goods are costing more and they're saying fuel's going down. 

I'm going, yeah, that's because tyres, rubbers costing more, and you think you have your registrations, everything, you know, it's just like when you think you're getting a bit of a break, it's going up elsewhere. It's just, it's, it's, this is, this is how it is. 

It's really sad out there. Like I said, I think it's going to get tougher. Yeah, very little is untouched. Scott, the RBA, if it does increase the cash rate tomorrow, someone on an average loan, will be paying almost $17 ,000 more than May last year. 

I mean, how do you find that kind of money? Well, that's the problem, isn't it, Sarah, that people are struggling? It's interesting to see how the markets have changed their views after the latest inflation numbers, the unemployment numbers, the wage increases as well. 

Now they're factoring in a more likely to get an increase tomorrow or maybe next month or both. People are doing it tough. Well, this will be the issue for the next couple of months now and probably into the next year. People are doing it tough now and it's only going to get worse. 

Well, the red hot property market over the weekend will give the Reserve Bank another reason to consider raising interest rates tomorrow. For more, let's bring in John Keo, Economics Editor of the Australian Financial Review. Now, John, good morning. How will the latest auction results factor into the RBA's thinking? 

Yeah, good morning, Karl and Sarah. Look, nearly eight in 10 Sydney homes that went under the hammer on the weekend actually sold and we had a very high 77% auction clearance rate across the nation, really strong in Melbourne, Brisbane, Adelaide, Canberra around the nation. 

And I think this will be making the RBA a little bit nervous because despite those 11 interest rate rises, not only are we getting high auction clearance rates, but prices have been rising for the last three or so months as well. So they'll be a little bit anxious about that. 

Any other factors? Yeah, I think the other couple of big factors they'll be weighing up are that inflation remains too high. We saw it come in at 6 .8% in April. And also the larger than expected wage increase for minimum -⁠a -⁠weight award -⁠wage workers last week by the Fair Work Commission on Friday, they'll be a little bit anxious that that might feed into other higher costs for business that they'll pass on in goods and services and could add to inflation. 

So I think they'll be the main factors they'll be weighing up this meeting. What do you reckon? Which way is it going to go? Yeah well look, financial markets are pricing in at roughly a 50 -⁠50 chance of a rate rise. I'm in the camp where I think they do raise interest rates tomorrow. 


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