When Timon Howes took out a mortgage on his Canberra home in May 2021, former Reserve Bank governor Philip Lowe’s assurance three months earlier that interest rates would not rise until 2024 was still ringing in his ears.

Almost four years later the impact of that decision is still affecting him.

With the cash rate at a record 0.1 per cent low, but not expected to rise any time soon, the management consultant and his wife took out a two-year fixed mortgage at 1.99 per cent.

“It’s something that I look back on now and wish that I followed more closely, and I would have appreciated what it actually meant to have the cash rate at such a low point,” he told AAP. 

“So we probably would have looked to fix for a longer term than just the two years.”

As inflation sky-rocketed post-pandemic and the central bank jacked up rates in response, Mr Howes’ repayments doubled as his interest rate jumped to 6.2 per cent.

If he and his wife hadn’t moved to better paid jobs just before the higher repayments kicked in, Mr Howes says they would have struggled.

Still, the couple had to make sacrifices, including cutting the budget for their wedding.

“It was definitely a shock,” he said.

“We had to be a lot more disciplined with our money for a while there and trying to afford a wedding at the same time as well, it was a period of real frugality for us.”

It’s a similar story for households across Australia, who have had to cut spending to keep their heads above water.

Chris McKenzie works for a large national retailer and told AAP spending has flattened.

“We see much less foot traffic in the stores … retail staff aren’t being rostered on as frequently as they would ordinarily,” he said.

“I haven’t got the extra hours that I’ve had historically … less casuals are coming through, and the casuals that do come through aren’t being held on to.

“We have people returning to work, especially after having children, as casuals, and they’re depending on that income to keep their family afloat.”

If the RBA board does cut rates by 25 basis points on Tuesday, as expected, it’ll provide welcome relief for Mr Howes.

But with a shallow easing cycle predicted by most economists, he’s sceptical it will make a significant difference unless more cuts come down the pike.

“I think that signs (in the economy) have been really, really positive, and I think Australians deserve some interest rate cuts to ease that cost-of-living pressure,” he said.

ACTU secretary Sally McManus said the RBA’s decision on Tuesday will have a huge impact on workers and their families, accusing the central bank of holding the nation back.

“The RBA does have a track record of being out of touch … of getting caught up in groupthink and not realising the impact their decisions and their inaction has on the economy,” she said.