Interest rates Australia

2023 - 1 - 31

Post cover — Image courtesy of "7NEWS.com.au"

Reserve Bank interest rates: Grim prediction for millions of Aussie ... (7NEWS.com.au)

Some Australians could be forced to find more than $1000 extra dollars in their monthly budgets. Here's why.

“Don’t stick your head in the sand. “After a break in January, the RBA is unlikely to leave the cash rate on hold for two months in a row,” she said. If the RBA bumps the cash rate to 3.35 per cent - a 25 basis point hike - it would take it to the highest rate since September 2012. Commonwealth bank expects it to peak at 3.35 per cent next month, while ANZ, NAB and Westpac are flagging more rises may be on the horizon. [inflation rate reached a 30-year high](https://7news.com.au/business/finance/treasurer-jim-chalmers-warns-inflation-is-about-to-get-worse-right-after-reserve-bank-of-australias-eighth-consecutive-rate-rise-c-9085489) of 7.8 per cent in the December quarter and the RBA expects it to continue to increase in the months ahead, according to its [December announcement](https://www.rba.gov.au/media-releases/2022/mr-22-41.html). The big four banks expect the RBA will hike by 25 basis points in February but when the cash rate will finally peak remains a contentious issue. Commsec’s Craig James agreed, telling Sunrise the bank expects the cash rate to hit 3.35 per cent next week. “At some point in time, it’s got to slow the economy down and in our calculations, consumer spending is already starting to slow down.” While other experts say that estimation is at the more dire end of the scale, they agree the RBA is very likely to increase the cash rate to 3.35 per cent next week as it tries to curb inflation. While inflation is expected to eventually decline this year, RateCity predicts borrowers will “almost certainly” face another cash rate hike in February, which would make it the ninth rise in as many meetings. Economists from leading investment bank Deutsche Bank expect the Reserve Bank of Australia’s official cash rate to hit 4.1 per cent by August, with predictions of 25 basis points hikes in February, March, May and August. [Australian homeowners](https://7news.com.au/lifestyle/real-estate) are being warned more mortgage pain is to come, as experts predict as many as four [interest rate hikes](https://7news.com.au/business/interest-rates) in coming months.

More rate pain on the way as nation's AAA credit rating affirmed (The Sydney Morning Herald)

As one of the world's largest credit agencies affirmed the nation's AAA credit rating, Deutsche Bank Australia senior economist Phil O'Donaghoe said on Monday ...

Ratings agency S&P Global on Monday said it expected the Australian economy to continue growing despite the higher rate settings put in place by the Reserve. Data to be released on Tuesday by the Australian Bureau of Statistics is expected to show a fall in the value of retail sales through December. “Persistent inflation pressures will see the RBA board raising the cash rate in February and March. It is expected to use its first meeting of the year next week to lift the cash rate another quarter of a percentage point. “Australia’s economy will likely avoid recession and expand over the next three years. That would be on top of the cumulative $1300 increase in repayments from last year’s rate rises over the same period. [ Subscribers can sign up to our weekly Inside Politics newsletter here](https://www.smh.com.au/newsletter-signup?newsletter=inside-politics). Inflation at the time was 1.6 per cent. This reflects low unemployment and high commodity prices. Retail activity jumped by 1.4 per cent in November, partly due to highly advertised Black Friday and Cyber Monday sales. The last time the cash rate was above 4 per cent was in early 2012 as the RBA was cutting interest rates to help support the economy. The Reserve is in the midst of its most aggressive tightening of monetary policy since 1994, taking the cash rate to 3.1 per cent from 0.1 per cent in April last year.

Home buyers warned of 'four more interest rate hikes by August' (9News)

Economists are warning home buyers they should expect four interest rate rises by August.

Australia's annual inflation rate reached a 30-year high of 7.8 per cent in the December quarter. However, CoreLogic's Daily Home Value Index (HVI) shows Brisbane's home values dropped 10.9 per cent between the peak in June and January 28, the largest percentage fall on record. Following a pandemic population surge and increase in values of more than 43 per cent, Greater Brisbane home values hit a record high on June 19, 2022, soon after the Reserve Bank of Australia (RBA) commenced its as-yet unended rate-tightening cycle. The Reserve Bank of Australia is now expected to raise the official cash rate from 3.1 per cent to 4.1 per cent in the next seven months, Deutsche Bank Australia senior economist Phil O'Donaghoe said. Deutsche Bank Australia senior economist's Phil O'Donaghoe said home buyers should brace for the Reserve Bank to lift interest rates after their meetings in February, March, May and August. And the hikes will likely start next week when the Reserve Bank meets, with a quarter of a percentage point rate rise on the cards.

Bad news for Aussies with home loans (NEWS.com.au)

Australians will be hit with another four interest rate rises up until August to reach 4.1 per cent, a leading economist has warned.

[September would be a bloodbath for homeowners](https://www.news.com.au/finance/real-estate/selling/australian-house-prices-to-plunge-20-by-september-expert-warns/news-story/84c7e8b61d6cf675b4c536cfc8993687), as it would be when house prices would bottom out in response to the interest rate hikes, leaving Australians with more debts to pay off than their property is worth. In a December statement, RBA Governor Philip Lowe indicated more rate rise were on the way, saying that the RBA “expects to increase interest rates further over the period ahead but it is not on a preset course”. “After last week’s Consumer Price Index (CPI) and … He has forecast that the unemployment rate is also set to rise to 4.5 per cent. [told ](https://www.dailytelegraph.com.au/news/nsw/official-interest-rate-to-hit-41-per-cent-by-august-deutsche-predicts/news-story/2abc55df1eedd144a654b1393012fe9c) [The Daily Telegraph](https://www.dailytelegraph.com.au/news/nsw/official-interest-rate-to-hit-41-per-cent-by-august-deutsche-predicts/news-story/2abc55df1eedd144a654b1393012fe9c)of his worrying predictions ahead of the RBA’s first meeting of the year where it is widely expected they will increase the cash rate again. And that’s not the only bad news, with the same expert forecasting the unemployment rate will rise for the first time in years.

The Headlines: Will Interest Rates Go Up Four More Times By ... (The Latch)

If you're a homeowner with a mortgage, then I have some bad news. For an Australian expert has a dire 2023 interest rate prediction.

“We wanted to act together as a statement of how importantly Australia and France regard the support of Ukraine in the current conflict. For an expert has an [interest rate](https://thelatch.com.au/pay-secrecy-clauses/) prediction that deserves to be listened to and subsequently flipped off. “Almost shocked to think that he had survived, it was unbelievable news. [The Latch](https://thelatch.com.au/) and subscribe to our [email newsletter](https://thelatch.com.au/subscribe). Mendelson disappeared from her Lismore home around a month after last year’s devastating floods. This skedaddle was because Australia, America, and the United Kingdom teamed up to create the Aukus partnership. These shells will be used by Ukraine to defend against Russia’s illegal invasion. Which is a tonne considering the I don’t think we are going to see that.” [Phil O’Donaghoe](https://www.smh.com.au/politics/federal/more-rate-pain-on-the-way-as-nation-s-aaa-credit-rating-affirmed-20230130-p5cgip.html), of Deutsche Bank Australia, believes that the Reserve Bank of Australia (RBA) isn’t done hiking up interest rates. Secondly, some of these prices haven’t dropped enough this year. [mortgage](https://thelatch.com.au/rba-increase-interest-rate/), then I have some rubbish news.

Interest rates forecast to rise four more times as Reserve Bank of ... (Daily Mail)

Radio host Neil Mitchell demands answers from Labor as top bank warns Aussies are set for a terrifying FOUR interest rate rises in a row as prices continue to ...

Today host Karl Stefanovic demanded to know how Mr Shorten intended to help ease the financial pressures faced by thousands of families Government Services Minister Bill Shorten was slammed by 3AW radio host Neil Mitchell in a heated live TV clash - as he demanded to know what the government was doing to ease the financial stress of families Government Services Minister Bill Shorten was slammed by 3AW radio host Neil Mitchell in a heated live TV clash - as he demanded to know what the government was doing to ease the financial stress of families. Host Karl Stefanovic demanded to know how Mr Shorten intended to help ease the financial pressures faced by thousands of families. 'We now look for the RBA cash rate to rise to 4.1 per cent by August, with 25 basis points hikes in each of February, March, May and August. Deutsche Bank has predicted the Reserve Bank of Australia will hike rates by a quarter of a per cent in February, March, May and August.