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 declared they are struggling with the cost of living, despite Reserve Bank governor Michelle Bullock declaring frustration over interest rate hikes was just ‘noise’.

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

The RBA this month, on the new governor’s watch, raised interest rates for the 13th time in 18 months to a 12-year high of 4.35 per cent.

This has seen monthly variable mortgage repayments soar by 69 per cent since May 2022, when the cash rate was still at a record low of 0.1 per cent.

RBA Governor Michele Bullock told a Hong Kong conference this week frustrations over interest rate hikes were ‘noise’

An Aussie is pictured shopping at Woolies during the cost of living crisis

‘We have, like other countries, raised interest rates much more quickly than we have in the past, and that has created, in fact, 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 pretty good.’

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

‘I used to enjoy eating brunch at a cafe once or twice a fortnight but when I started paying $25 to $30 for standard brekkie items like eggs and toast I stopped going. 

‘A bill for my wife and I would be $60 to $70 for breakfast.’

The Aussie said they’ve also stopped all their subscription services, including Netflix, and rarely get food delivery.

Australians shared the cuts they’ve made to their budgets since high interest rates triggered the cost of living crisis

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

‘I used to take the kiddo for banana bread, and I’d have a coffee after swim class on a Saturday. It was a nice bit of additional time together,’ one wrote.

‘Then they upped the banana bread to $6 a slice. When it’s pre-packaged banana bread served by a high schooler who bangs it in the sandwich press for a minute and slathers some butter on it, I just can’t justify it.’

Another said: ‘Most of my issues are around value and leads me to question these purchases.

‘Can I still afford a $5 cheeseburger from Maccas for a snack? Sure, but I’d rather a Vietnamese roll that will fill make me feel better and only a couple bucks extra.’

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

‘[I no longer buy] full cuts of meat, like actual steak or chicken breast. I haven’t had a good bit of red meat in months and stick to the cheaper mince and chicken tenders and cheaper parts,’ one wrote.

‘I’ll forgo a full and nutritious meal to give my kids a decent meal instead and I’ll have the scraps or something snacky that’s cheaper.’

Many commenters said they’ve either reduced or completely stopped using streaming services, like Netflix

Another said: ‘Food in general. Happy 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 buying groceries. Just buy what I need really.’

A third said: ‘I’ve just started buying items in bulk when they are half-price at Woolies. Seems to be making a difference.’

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

‘Tolls. It’s painfully slow going the non-toll route but saves me $200 a month,’ one person said.

‘Social activities, I’m still hanging out with friends but have taken the focus off breakfast, coffee, drinking and more so on exercising, walking the dog, going to the beach,’ another said.

Other Australians said they’ve stopped taking toll roads and are tighter with groceries to allow extra money for bills

‘We avoid using the dryer and [reduced] haircuts. Used to get them once every three months but now it’s been six months and I’m holding out,’ a third added.

‘Takeaway, streaming services, Audible – which is the hardest as I commute for two hours a day, going to the movies, all types of hobbies. We’ve pretty much cancelling everything except groceries/insurances/bills,’ another said.

‘I just took all enjoyment out of life and it seems to have positively impacted my budget,’ a fifth said.

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

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

‘No more walking the isles and grabbing things because they look good at the time. Only exception is going to the farmers market for fruit, veggies and the abattoir for meat but even that is getting too expensive now.’

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

‘I wasn’t buying a lot before and after having 2 kids my body has changed and I’m pretty much limited to 3-4 outfits,’ they explained.

‘Looking forward to when I can spend a few grand on just updating/replacing my wardrobe.’

A second added they are skipping gym memberships.

‘Unless you are a bodybuilder who requires the use of big machinery and rigs, dropping the gym membership in favour of home / local park workouts is another easy win. 

‘Requires a little bit of investment initially for a few handheld weights and resistance bands etc but you make that money back fast.’

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

‘We aren’t going away on holidays this year, and sold our caravan. Only kept Spotify and Netflix subscriptions. Looking at cheaper phone plans, and shopping around for electricity/gas/insurances. It’s wild. And I hate it.