The Commonwealth Bank of Australia (CBA) has made a devastating new prediction for Aussie homeowners.
After a series of RBA meetings that have resulted in the official cash rate being put on hold — CBA has warned the tide may be starting to turn in the favour of further rate hikes .CBA’s head of Australian economics, Gareth Aird , said on Tuesday that not only were rate rises now a “near‑ term risk ” — but that any cuts will come slower than previously expected.
Three 25 basis point rate hikes would bring the official cash rate to 5.1 per cent – its highest level since 2008. HSBC chief economist Paul Bloxham also agreed that the recent acceleration in inflation meant that further tightening could not be taken off the table. “It’s clear that in the short run, the RBA is going to have to upgrade their inflation forecasts, but the question will be whether they can still be getting inflation back to the target band over the same horizon as they previously forecast.”
Day Ceasefire Offer Cash Rate Right Level Commonwealth Bank Of Australia Mike Tyson Federal Government Policy Aussie Airline Percentage Points Rate Cut Paul Bloxham Economist Warren Hogan Policy Rate Term Risk Dire Interest Rate Official Cash Rate Rate Rises Target Band Interest Rate Hike Point Rate Hikes Basis Point Increase Ben Graham Reserve Bank Veteran Economist Interest Rates Gareth Aird Inflation Forecasts HSBC PLC Judo Bank Veteran Economist Warren Monetary Policy Basis Point Rate Policy Meeting Basis Point Interest Rate Warning Kyle Sandilands Higher-Than-Expected Inflation Data Steve Price Tax Cuts Variable Rate Staff Forecasts Warren Hogan Rate Hikes
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