I  suspect many fixed-rate borrowers do not adjust their spending in advance, but rather wait until they roll onto the higher rate. ﻿[ 7] Even those that are more forward-looking are likely to make moderate adjustments at first, with further adjustments required at the time of the switch.
﻿[ 8] Hence, despite the potential for some forward-looking behaviour, it is plausible that the high share of fixed-rate loans has contributed to a longer lag for the cash flow channel. Estimates of how much further scheduled mortgage payments will rise as fixed-rate borrowers roll off their loans this year are provided in Graph 4.