2024 Interest Rates Australian Government. While a sharp rise in interest rates from 0.25% to 5.50% from october 2021 to may 2023 did not result in a housing market crash, it tamed an overheating market. Increases to government spending are typically thought to lead to higher inflation in net terms, heightening the chance that the rba responds through setting comparatively higher interest rates.

Interest rates are rising, risks are growing, so the government needs to tread carefully. This article explores these recent developments in consumption across household groups.