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Bank deposits boom as mortgage borrowers battle - the gap widens

The article from The Australian discusses a significant shift in financial behavior among Australians, highlighting a boom in bank deposits as mortgage borrowers face increasing challenges. Amidst rising interest rates and economic uncertainty, there has been a notable increase in savings, with household deposits growing by $5.6 billion in May alone, marking a 5.6% annual increase. This surge in savings is juxtaposed against the struggles of mortgage holders, who are dealing with higher repayment costs due to the Reserve Bank of Australia's decision to raise the cash rate to 4.1%. The widening gap between savers and borrowers is creating a divide in financial stability, with savers benefiting from higher interest rates on their deposits while borrowers face financial strain. The article also notes that despite the savings boom, the overall economic environment remains cautious, with concerns about potential future rate hikes and their impact on consumer spending and economic growth.

Read the Full The Australian Article at:
[ https://www.theaustralian.com.au/business/wealth/bank-deposits-boom-as-mortgage-borrowers-battle-the-gap-widens/news-story/8a3320c4120ed3ac8ecc9e20537e484f ]