A woman surrounded by bookshelves full of books.

With another rate hike likely next week, Barbara is bracing for the tough times ahead

Every time interest rates rise, the impact reverberates directly into Barbara Aldridge’s used bookstore.

“Everyone goes ‘huh’, grabs their money and I’m one of the last places they spend money, so everyone takes a little breather,” Ms Aldridge said.

As a keen observer of people’s spending habits for 27 years behind the counter of her company in suburban Perth Guilford, she has found that people are most likely to keep money in their pockets when there are interest rate hikes, elections and wars.

She expects things to be no different if the Reserve Bank of Australia raises rates again, as widely expected, when it meets on Tuesday.

Care for young mortgage holders

While she can largely absorb the impact of interest rate hikes on her business loan, she is concerned about younger people with large home loans.

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