Thirty-three out of 35 economists polled expect a Cup Day rate rise, and nine predict the RBA cash rate peaks at 4.6 per cent.
Economists have ratcheted up their interest rate projections and a minority of forecasters now argue the Reserve Bank’s hotly tipped Cup Day increase may not be its last.
Dr Kearns predicts a peak rate of 4.6 per cent and was until this year the RBA’s head of domestic markets.“We forecast a peak of 4.35 per cent in November, but with upside risk of further hikes in December or 2024 if inflationary pressures remain elevated,” said Carlos Cacho, chief economist at Jarden.bet the RBA will lift the cash rate next week to 4.35 per cent. Nine economists predict the cash rate peaks at 4.
Some economists dispute this, arguing that a terminal rate of 4.35 per cent will be sufficient to return inflation to target.“With demand already crushed, and wage growth contained, further rate hikes are not needed to slow the economy,” said Stephen Smith, a partner at Deloitte. “Inflation expectations also remain relatively well anchored and as a result, the efficacy of a further rate hike to tame inflation is muddy at best.
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.
SBS remains home of the FIFA World Cup™, secures exclusive FIFA World Cup 2026™ rightsSBS will remain the home of the World Game - with the national broadcaster today confirming it has secured the exclusive rights to the FIFA World Cup 2026™.
Read more »
Interest rates may rise as a result of migration surgeThe arrival of half a million migrants over the past year is adding to inflation pressure and will influence the next RBA rates decision, a former RBA economist says.
Read more »
Fresh sign RBA will hikes rates againRetail spending soared higher in September, as shoppers embarked on a spending spree, adding further pressure on the Reserve Bank to hike rates on Melbourne Cup Day.
Read more »
RBA interest rates: Tough Christmas looms despite retail spending splurgeStrong growth in spending on clothes and gardening equipment underlines the case for further interest rate rises, but retailers are urging the RBA to hold fire.
Read more »
Nikko Asset Management Co-Head Predicts One More Rate Hike by RBAJames Alexander, co-head of global multi-asset at Nikko Asset Management, believes that the Reserve Bank of Australia (RBA) will raise the cash rate once more before ending the current cycle. However, he cautions against further rate hikes due to the potential negative impact on job losses.
Read more »
Social media, climate and supply chains are amplifying economic risks: RBAA senior Reserve Bank official warned the global economy is facing a growing number of risks that may leave interest rates higher.
Read more »