Tuesday, March 7, 2023

Reserve Bank to raise cash rate again - but Westpac's Bill Evans sees rate cuts on horizon

Despite the household pain from rising mortgage stress, the Reserve Bank is on track to deliver its tenth consecutive interest rate hike later today. 

That would take the official cash rate to 3.6 percent - the highest level in more than a decade.

So how far will the RBA need to go in bringing inflation down?

Westpac chief economist Bill Evans told me the RBA might cut rates early next year - but only if inflation comes down to around 4 percent.

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