Recent increases in interest rates have led to people acting with more caution when borrowing, the RBA has noted.
Australians have become more cautious about borrowing after recent
interest rate rises, according to one organisation.
The Reserve Bank of Australia (RBA) said the hikes could leave people open to shocks so they are playing things safe in terms of their finances, the Australian Associated Press reports.
RBA governor Glen Stevens noted that care is being taken because of the long downward trend in the saving rate.
He added: "We see at present a certain caution in their behaviour - even though unemployment is low and measures of confidence have been quite high, consumer spending has seen only modest growth."
The current official cash rate stands at 4.5 per cent after it was increased six times between October 2009 and May this year.
It grew by 0.25 per cent at the beginning of May, which prompted the National Australia Bank – which offers
credit cards – to up the rates on a range of its savings accounts.
By Mark Hornby
