The Australian Council of Trade Unions (ACTU) has welcomed the decision by the Reserve Bank of Australia (RBA) to pause the interest rate, holding the cash rate at 4.1%.

While welcoming the decision, the ACTU has also warned the rate pause is still a small comfort to workers, with payments on an average mortgage of $600,000 increased to $1496 a month since the rate rise in May 2022, resulting in many workers struggling to keep up with payments. In addition, rises are also being pushed onto renters who are already struggling in an unprecedented housing crisis.

“We know that workers have borne the brunt of inflation and these rates rise, while corporate profits have risen and chief executive pay packets have grown,” ACTU secretary Sally McManus says.

“From 2013 to 2023, Australian workers suffered the lowest wage growth on record and, in fact, real wages are now 3.1% lower than they were in 2013. Another rate rise would have seen already stretched family budgets cut to the bone.

“A pause in the rate rises provides some small relief to workers out there doing it tough. We are still very mindful, however, that workers have fallen way behind.”