ANALYSIS: Another interest rate rise is expected today, but where will the RBA go in 2023?
But Morgan Stanley said in its research note, that even with the central bank changing its tone, "we see further tightening as likely when the RBA returns in 2023".
"We forecast further 25 basis points hikes from the RBA in February and March to a terminal cash rate of 3.6 per cent."CBA's current forecast has the cash rate stopping at 3.10 per cent today, but it has said there could be another hike next year, depending on this Tuesday's statement.If this happens, research firm RateCity says someone with a $500,000 debt, could see their monthly repayments rise to an estimated $3,393 by May next year.
"The RBA has referred to the prospect of a pause in rate hikes on six occasions in the last month, and the dip in monthly inflation in October means that a pause is possible and would not be surprising," AMP chief economist Shane Oliver said.
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