Sarah-Jane Tasker: Rates rise divides generations

Who doesn’t love an intergenerational battle on who had it better or worse?

We’ve all grown up with parents or grandparents saying “back in my day”. That battle kicked up a gear this week when The West splashed Wednesday’s paper with “you call that a rate hike” with a reminder from a friendly 85-year-old that the interest rate was 17 per cent in 1990. That history lesson came after the RBA lifted the cash rate to 0.35 per cent.

Increasing rates in the middle of an election campaign, and one where cost of living pressures is a key issue, was always going to kick off a spirited debate. But while our political class jumped on the rate move to beat their chests about who is best to manage the economy, all claiming “vote for me I’ll look after you”, the generational debate was far more entertaining.

After The West ran that page one story, comments from both sides of the argument made for interesting reading.

The older readers had a dig at the spending habits of the younger generation, arguing they themselves were more frugal “back in the day”, while the millennial view focused on higher costs and house prices.

Some of the comments were funny but it is no laughing matter that many young Australians are battling to buy a house and increased rates will make it even harder for some.

But our interest rate had to rise, and it will continue to rise, and affording that higher mortgage payment might just mean some of those frugal tips from “back in the day” will start to come in handy.

Avocado on toast, anyone?