If you're a regular reader, you may recall that in September 2022, February 2023, and July 2023, I reviewed the predictions of economists at the four major banks (ANZ, CBA, NAB, and WBC) regarding the projected peak of the cash rate. With the upcoming RBA meeting on Tuesday, September 5th, let's take a look at the current status of these predictions:
Keep in mind that these are just predictions, and that the big banks are subject to change these forecasts. Figures are accurate at the time of publishing.
The most recent data from the Australian Bureau of Statistics (ABS) reveals that the Consumer Price Index (CPI), a measure of inflation, increased by 4.9% in the year leading up to July 2023. This marks a decrease from the 5.4% rise observed in June. While it remains uncertain whether this new inflation data will impact the official cash rate, the trajectory of inflation is encouraging, moving towards the RBA’s target range of 2-3%. We eagerly anticipate the RBA’s decision on Tuesday.
Given the frequent fluctuations in interest rates, staying well-informed is crucial. For first-time homebuyers, even a slight 0.25% increase in interest rates can significantly impact the affordability of your loan. If you already have a mortgage, it's important to evaluate whether your current rate remains competitive, as you might unknowingly be paying thousands more each year. To stay updated, please don't hesitate to contact me at 0401 225 713 or lmckean@lbkprivatelending.com.au.