3 February 2026 - Today’s interest rate rise, will add to the already significant cost of living pain being felt by millions of Australians, says not-for-profit advocacy group AMPLIFY.
Even before today’s 25bp increase, taking the official cash rate to 3.85%, Australians were feeling overwhelmingly pessimistic about their economic circumstances.
In a survey of more than 4,000 Australians between mid-December 2025 and mid-January 2026, AMPLIFY found almost two thirds of Australians feel their finances are more stretched than a year ago. Even more alarmingly, almost a third feel like their finances are going ‘much less far’ than a year ago.
The resounding message from Australians is that despite earlier rate cuts and targeted cost of living relief from governments, higher and persistent inflation is leaving millions worse off.
AMPLIFY CEO Georgina Harrisson says Australians are bearing the brunt of rising costs.
“Even before today’s rate rise our research showed the cost-of-living crisis was far from over, and for millions of Australians, it is actually getting worse,” Ms Harrisson said.
“The reality is that almost two-thirds of Australians feel like their finances are going backwards and shockingly, almost a third are saying their money is going much less far than it did a year ago.”
In fact, AMPLIFY’s research found that 68% of Australian households are now in housing stress - spending more than thirty per cent of household income on housing alone.
“Australians are desperate for real action from their leaders, which means dealing with the systemic problems keeping housing costs and inflation high. It’s past time for bigger, bolder action to lift our productivity and address Australia’s housing crisis,” Ms Harrisson said.
“Short-term cost of living relief and quick fixes are not a sustainable solution to the systemic problems we face. The longer we put it off, the less likely we will be able to restore the promise of home ownership and higher living standards for future generations.”
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