While the rise in the cash rate is designed to control the inflating prices of goods and services, it puts stress elsewhere on the economy, particularly for those with a mortgage.

“Interest rate rises likely mean less discretionary spending for households. Perhaps an average Australian family will eat out one less night each week or spend less on retail spending.” Haupt said.

“Economic activity could eventually slow down and cause the inflation rate to drop due to decreased demand for goods and services.”

Full Article: Lifehacker