ANZ: Employment conditions provide cushion for RBA rate hikes

On February 3, ANZ chief executive Shayne Elliott said Australian mortgage holders were likely to feel the pinch in an environment of rising interest rates, but current employment conditions provided a buffer. He said Australians had realized “things were looking a little bleak” and were increasing their savings and paying down debt.

Elliott said the fact that people had jobs underpinned their confidence in their ability to manage higher repayments. There are more people in employment in Australia than ever before, and they’re confident they’ll keep their jobs, they’re confident their wages will go up, which wasn’t the case before.