Australia faces ongoing economic challenges due to high inflation and tighter monetary policy, affecting low-income earners, renters, and indebted households.

Australia faces ongoing economic challenges due to high inflation and tighter monetary policy, with low-income earners, renters, and indebted households most at risk. The RBA's Financial Stability Review reveals that many households are experiencing budget pressures, and real disposable income per person has fallen by 7% since early 2022. The RBA warns that these pressures will gradually ease as inflation declines and real incomes rise, but cautions that borrowers will face tough conditions for the remainder of 2024.