Reserve Bank governor given a reality check after ‘tone-deaf’ comments: Aussies reveal the surprising items they are sacrificing as interest rates soar under her watch

Aussies have said they are struggling with the cost of living, despite Reserve Bank Governor Michelle Bullock declaring frustration over rate hikes was just ‘noise’.

Michele Bullock, who earns more than $1 million a year, was speaking at a meeting of central bank governors in Hong Kong on Tuesday when she made the comments that sparked outrage.

This month, under the supervision of the new governor, the RBA raised interest rates for the thirteenth time in eighteen months to a twelve-year high of 4.35 percent.

As a result, monthly variable mortgage repayments have increased by 69 percent since May 2022, when the cash interest rate was still at a record low of 0.1 percent.

“We, like other countries, have been raising interest rates much faster than in the past and that has actually created a lot of political noise and a lot of noise from the general public,” Ms. Bullock told the conference.

“Despite that noise, households and businesses in Australia are actually in a pretty good position. Their balance sheets are quite good.”

But Aussies have hit back, revealing they are struggling and sharing the surprising things they are cutting back on in a social media thread on Reddit.

“I used to love having brunch at a cafe once or twice every two weeks, but when I started paying $25 to $30 for basic breakfast items like eggs and toast, I gave up.”

“A bill for my wife and I would be $60 to $70 for breakfast.”

The Australian said they have also stopped all their subscription services, including Netflix, and rarely offer food delivery.

Australians shared the cuts they have made to their budgets since high interest rates hit the cost of living

Many Aussies said they have cut back on things they can still afford but can’t justify the price.

‘I used to take the boy out for banana bread and on Saturdays I would have a cup of coffee after swimming lessons. It was a nice bit of extra time together,” one person wrote.

“Then they increased the banana bread to $6 each. If it’s pre-packaged banana bread, served by a high school student who presses it in the sandwich press for a minute and spreads some butter on it, that just can’t be justified.”

Another said, “Most of my issues are around value, which makes me question these purchases.

“Can I still afford a $5 cheeseburger from Maccas for a snack? Sure, but I’d rather have a Vietnamese sandwich that makes me feel better, and for just a few extra dollars.”

By far the biggest thing Aussies cut back on was groceries.

‘[I no longer buy] full cuts of meat, such as real steak or chicken breast. I haven’t had a good piece of red meat in months and am sticking to the cheaper ground beef and chicken tenders and cheaper parts,” one person wrote.

“I forego a full, nutritious meal and give my kids a decent meal instead, and then I’ll have leftovers or something cheaper to snack on.”

Many commentators said they have reduced or completely stopped using streaming services such as Netflix

Another said: ‘Food in general. I like to buy the crappier cuts of meat and just cook them differently or use mustard and spices to cover it.

‘Also just random impulse purchases when grocery shopping. Just buy what I really need.’

A third said: ‘I’ve just started buying items in bulk when they’re half price at Woolies. It seems to make a difference.’

Others shared the random bits and pieces they had to cut from their budgets to make room for higher bills.

‘Toll. It’s painfully slow to take the non-toll route, but it saves me $200 a month,” one person said.

“Social activities, I still hang out with friends but have shifted the focus from breakfast, coffee, drinks and more to exercise, walking the dog and going to the beach,” said another.

Other Australians said they have stopped using toll roads and are tightening up on groceries to allow extra cash for bills

‘We avoid using the dryer and [reduced] hairstyles. I used to get them once every three months but now it’s been six months and I’m keeping up,” a third added.

“Takeaway, streaming services, Audible – that’s the hardest part because I commute two hours a day, go to the movies, all kinds of hobbies. We canceled pretty much everything except groceries/insurance/bills,” said another.

“I just took all the fun out of life and it seems to have had a positive impact on my budget,” said a fifth.

A sixth said: ‘Salmon, I used to eat it once a week but I’ve cut it out because everything else has gone up so much.’

A seventh added: ‘We’ve switched to click & collect so we only order the essentials.

‘No more walking around the islands and grabbing things because they look good at that moment. The only exception is going to the farmer’s market for fruits and vegetables and the slaughterhouse for meat, but even that is becoming too expensive now.’

Another said they stopped buying clothes, which they said was the hardest sacrifice.

“I didn’t buy much until I had two kids, my body has changed and I’m pretty much limited to three to four outfits,” they explained.

‘I’m looking forward to spending a few thousand euros updating/replacing my wardrobe.’

A second added that they skip the gym membership.

‘Unless you’re a bodybuilder who requires the use of large machines and equipment, giving up gym membership in favor of workouts at home or at the local park is an easy win.

“Requires a bit of initial investment for a few hand weights and resistance bands, etc., but you’ll quickly make that money back.”

A third stated: ‘My husband has a car he loves but he is selling it. My husband doesn’t drink at all, I drink about once a year.

‘We are not going on holiday this year and have sold our caravan. Only Spotify and Netflix subscriptions maintained. Looking for cheaper telephone subscriptions and shopping around for electricity/gas/insurance. It’s wild. And I hate it.