The next move in interest rates will be down, says the bank’s economics team, which is now led by a highly regarded former Reserve Bank assistant governor.
Westpac’s economics team – which now has former Reserve Bank heavy-hitter Luci Ellis at the helm – expects the central bank to keep the official cash rate steady at 4.1 per cent until June next year.After that, they expect the RBA to start cutting interest rates, and say the official cash rate is likely to fall to 3.1 per cent by June 2025.
And they come at a time when investors are becoming increasingly concerned that the steep jump in global oil prices could fuel inflationary pressures, forcing central banks to resume their monetary tightening.expressed concern that the escalating conflict in the Middle East could keep oil prices and inflation higher for longer, causing people to adjust their expectations.
The economists say the US 10-year bond yield – regarded as a global benchmark – is likely to drop from 4.9 per cent at present to 4.6 per cent by the end of this year. “The constant cash-flow hits from interest rate rises may have stopped for many but consumers remain on high alert for further rate rises,” it says.At the same time, risk aversion – particularly for middle-income, middle-aged and mortgage-belt consumers – remains close to record highs.
Australia Latest News, Australia Headlines
Similar News:You can also read news stories similar to this one that we have collected from other news sources.
Are the Melbourne vs Sydney opera wars finally coming to an end?Opera Australia’s new program is trying to restore some balance between Australia’s biggest cities.
Read more »
Are the Melbourne vs Sydney opera wars finally coming to an end?Opera Australia’s new program is trying to restore some balance between Australia’s biggest cities.
Read more »
Are the Melbourne vs Sydney opera wars finally coming to an end?Opera Australia’s new program is trying to restore some balance between Australia’s biggest cities.
Read more »
Grandparents embrace nomadic life of full-time house-sitting to travel AustraliaFrom pet-sitting goats to seeing rainbows at Uluru and making friends in new outback towns, the grandparents are living a totally different life to the one they had — and they love it.
Read more »
Microsoft to help Australia build 'cyber shield', Anthony Albanese announces on Washington tripTech giant Microsoft will help Australia build a 'cyber shield' as part of a plan to sink billions of dollars into securing and expanding the national digital economy, Prime Minister Anthony Albanese reveals on a trip to the US.
Read more »
Australia is embracing this Spanish drink, but we’re mostly getting it wrongVermouth culture is huge in Spain. Some bars here are doing it right, though a lot aren’t. Like, what’s with the stingy pours?
Read more »