The Morning Edition Why our obsession with interest rates and cost of living is a problem
Feb 3, 2026
Matt Wade, senior economics reporter who analyzes interest rates, household wealth and cost-of-living data. He questions whether a widespread cost-of-living crisis is real. He contrasts today’s rates with historical norms, explores who truly feels strain, and highlights growing wealth inequality and longer-term policy priorities.
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Cost-Of-Living Not A Universal Crisis
- The HILDA survey shows financial stress is higher than before but not unprecedented across 20 years.
- Matt Wade argues calling it a nationwide "crisis" overstates the experience for most households.
Current Rates Low Compared To History
- Historical interest rates were much higher, so current rates remain low by long-term standards.
- Matt Wade stresses mortgages are larger now, complicating direct historical comparisons.
COVID Reset Expectations About Rates
- During COVID Australians experienced near-zero rates and adapted to unusually cheap borrowing.
- Matt Wade says rates returning to more normal levels was inevitable as inflation rose.