Expert Insights: Alan Hemmings’ Perspective
“Given the RBA will be watching the economy closely, I think it will be some time before we start seeing rates reduce,” Hemmings says. “I still think if we have a bad inflation result (it stagnates or increases a little), the RBA will move quickly to increase again (as we have just seen in the US), but only once or, at worst, twice.” While the prospect of rate reductions is tethered to a measured pace, Hemmings offers a glimpse into potential triggers for rate adjustments: “Rate reductions are likely not going to start until some time in 2024,” he cautions. Hemmings’ insights highlight that the RBA is being careful. It is considering many things, like how the economy is doing and what’s happening around the world, before making decisions about interest rates.Disclaimer: Over the next few days, you’ll receive additional guides to help you on your homebuying journey. Occasionally, you’ll receive carefully curated home-buying tips, offers & schemes, and news articles. You can unsubscribe any time you want. View our Privacy Policy
Big Four Bank Forecasts: Glimpses into the Future
Major banks offer projections on when interest rates will go down.- CBA envisions four reductions, starting from March 2024, aimed at bringing the cash rate down to 3.10% by the end of next year.
- Westpac, on the other hand, projects a more gradual decline, forecasting six rate cuts commencing in September 2024, and leading to a cash rate of 2.60% by late 2025.
- NAB, while forecasting one more rate increase this year, envisions a series of cuts in 2024 and 2025, ultimately seeking to bring the rate down to 3.10%
- ANZ predicts only one rate reduction – a 0.25-percentage-point cut – and does not anticipate it coming until the latter part of 2024.
- Stay Informed: Keep an eye on news and what the RBA says to stay ahead of changes.
- Check Your Finances: Regularly look at your money situation, like your mortgage and payments.
- Plan for What’s Next: Make a money plan that takes into account different possibilities, so you’re ready to make smart choices. If you’re planning on getting a home loan, here are some strategies you can use:
Inflation And Mortgage: How To Stay Prepared for a deep dive into this.
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