Interest Rate Rises – Personal Impact

Nov 9, 2009

Q. Will the recent increase in official interest rates make you personally better or worse off financially?

%
Total better off 15%
Total worse off 41%
Much better off 2%
A little better off 13%
A little worse off 31%
Much worse off 10%
Make no difference 40%
Don’t know 4%

41% of people think that the recent increase in official interest rates make them worse off personally, 15% think the interest rate increase will make them better off and 40% think it will make no difference to their personal financial situation.

People aged 55 years and over were more likely to indicate that the increase in official interest rates will make them better off (36%) while middle aged people were more likely to indicate that it will make them worse off (53% of 25 – 34 year olds, 54% of 35 – 44 year olds).

People in full-time work were more likely to indicate that the interest rate increase will make them worse off (55%).

Perception that the rise in interest rates will make people worse off increased with salary – 46% of people earning $600 – $1000 per week/46% of those earning $1000 – $1600 per week and 49% of those earning $1600+ per week think it will make them worse off.  55% of those earning $600 per week or less think the interest rate increase will make no difference to their personal financial situation.