The most recent rate hike is yet another blow for the most vulnerable Australians.

For Australians who are already struggling to survive the cost-of-living crisis, yesterday's increase in interest rates was like another punch in the gut, according to Claire Victory, National President of the St. Vincent de Paul Society of Australia.

"The ninth consecutive increase takes official interest rates to their highest levels since September 2012 and will be another blow to Australians already battered by surging inflation," the Reserve Bank of Australia said in a statement after the most recent rate hike. According to Ms. Victory.

"Higher interest rates will inevitably be passed on to consumers in the form of higher prices and rents, which will have a devastating impact on those who are already struggling to survive, particularly income support recipients and low-income Australians." She said

Victory is calling on the Federal Government to take action to protect vulnerable Australians by increasing Commonwealth Rent Assistance and lifting income support payments.

The payments given to people of working age have not kept pace with the rising cost of living, and the unemployment payment rates of Australians are among the lowest of the 37 members of the OECD.

It is unacceptable that JobSeeker, which costs $48 per day, forces approximately 830,000 Australians to live below the poverty line. Australia takes great pride in being known as the country of the "fair go," and JobSeeker runs counter to this ideal.

"People on income support payments were already in distress before the current cost-of-living crisis – having to make unthinkable decisions about missing meals or essential medication just to get by," said the government official. "People on income support payments were already in distress before the current cost-of-living crisis."According to Ms. Victory.

"Over the past few months, the Society has experienced a sharp increase in demand for assistance with day-to-day expenses such as housing, food, utilities, and medical care. This is due to the fact that the cost-of-living crisis has pushed these Australians further into desperation and disadvantage." Victory said

"An urgent increase to income support payments must be included as part of a comprehensive relief package," as stated in "The upcoming Federal Budget must include support for vulnerable Australians to survive the cost-of-living crisis." she added.

Victory said the failure of the government to eliminate Commonwealth Rent Assistance is yet another cruel blow dealt to disadvantaged Australians who had hoped to find a place where they and their families could live in safety and security.

"Housing is a human right; however, as a result of skyrocketing rental costs, particularly in regional Australia, it has become simply unaffordable for many people in this country," According to Ms. Victory.

"Commonwealth Rent Assistance has not kept up with these rental increases and must be increased urgently in order to assist vulnerable Australians in securing housing," said the Australian government. According to Ms. Victory.

As inflation, interest rates, and overall costs of living continue to rise, this predicament is only getting worse with each passing day that the government does nothing to improve it.

In the meantime, the CEO of ACOSS, Cassandra Goldie, stated that the RBA should have paused on increasing interest rates to take stock after the significant increases that occurred in the previous year.

Dr. Goldie stated that as a result of this decision, it will be more challenging for people to keep their jobs or to obtain the necessary number of paid work hours.

It won't be until the end of the year before we feel the full effects of rate hikes, which is all the more reason to pause and take stock of the situation.

"Goldie said that people shouldn't be sacrificed to higher unemployment and a life on income support for those living below the poverty line in order to keep inflation in check.

"Goldie stated that high inflation is a problem that needs to be addressed, and that the government should do more in addition to the very welcome price reductions for gasoline.

"We need to tackle the causes of inflation, including better regulation of exorbitant rent and energy prices and strengthening the ACCC," said the president of the United States. When it comes to controlling inflation, we simply cannot afford to rely on the ineffective blunt instrument that is higher interest rates” Goldie disclosed

To recall, The RBA decided to raise the cash rate target by 25 basis points to 3.35 percent at its meeting yesteday . The interest rate for Exchange Settlement balances was also raised by 25 basis points to 3.25 percent.

Worldwide inflation is still very high. However, it is starting to moderate as a result of falling energy prices, the improvement of supply-chain issues, and the tightening of monetary policy. However, it will take some time before inflation returns to the desired levels. The outlook for the world economy is still gloomy, with below-average growth anticipated for this year and the following year.

The CPI inflation rate in Australia reached 7.8% in the quarter ending in December, which is the highest level since 1990. In underlying terms, inflation was 6.9 per cent, which was higher than expected. Strong domestic demand is increasing the inflationary pressures in a number of sectors of the economy, but global factors still account for a large portion of this high inflation.

This year, inflation is anticipated to decrease as a result of both global factors and the slower expansion of domestic demand. According to the main prediction, CPI inflation will drop to 43.4 percent this year and to about 3 percent by mid-2025. It is crucial that the stability of the medium-term inflation expectations be maintained. is.

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