Room for a rate hike? RBA says households show ‘no signs’ of widespread stress

Hard-pressed households look to be safe from another interest rate hike in August, but the Reserve Bank says there is capacity to shoulder more tightening.There are just 12 days to go until the RBA makes its next cash rate decision – a defining moment that could see interest rates hit the highest level in 15 years.The RBA is on the edge of a monumental decision for interest rates. Picture: Hu Jingchen/XinhuaAs the bank's deciding meeting approaches, households are continuing to push through the war-induced cost of living crisis, with three rate hikes having added extra pressure this year on top of rising fuel and food prices.Despite inflated costs and rising mortgage repayments, the Reserve Bank says there are “no signs” of systemic stress causing concern however.Speaking in Sydney on Thursday, RBA assistant governor Sarah Hunter said financial stability remains strong.“We’re obviously very concerned about thinking about financial stability [but] there are absolutely no signs in the system of any systemic stress,” she said.RBA assistant governor (economic) Dr Sarah Hunter has signalled economic growth will need to be slower to return inflation to its target band. Picture: NewsWire ...