SYDNEY – Forecasts from major banks, including National Australia Bank (OTC:) (NAB) and Rabobank, project that the Reserve Bank of Australia (RBA) will maintain the current cash rate at 4.35% in the upcoming February decision. This projection comes after a series of interest rate increases from a historic low of 0.10% since May 2022.
The Consumer Price Index (CPI) figures, which are due today, could influence future inflation assessments and rate decisions. However, the consensus among the Big Four banks—Commonwealth Bank of Australia (CBA), Westpac Banking (NYSE:) Corp (WBC), NAB, and Australia and New Zealand Banking Group (ANZ)—is that there will likely be no rate changes until late in the first half of 2024. A downward adjustment in rates is predicted for November of this year.
The series of rate hikes has resulted in higher monthly payments for borrowers. In light of these financial pressures, individuals with loans are encouraged to explore options such as refinancing to alleviate the increased financial burden.
Contrary to earlier predictions of an increase, recent forecast revisions indicate no change to the rate in February. This contrasts starkly with the U.S. market’s projections, which include six prospective cuts. Despite market pricing for two cuts in Australia during 2024, analysts suggest a more cautious timeline may unfold for these adjustments.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.