Australia to Hike Rates Once More, Then Cut in 2024, Poll Shows

08/07/2023 03:38
Australia to Hike Rates Once More, Then Cut in 2024, Poll Shows

Australia’s central bank will raise interest rates one more time in its current tightening cycle, economists say, and then shift to policy easing next year as inflation cools and economic growth slows to a crawl.

  • Forecast is for RBA to hike to peak rate of 4.35% in November
  • Median is for policy easing to start by second quarter of 2024

The Reserve Bank of Australia building in Sydney, Australia.

Photographer: Brent Lewin/Bloomberg

Australia’s central bank will raise interest rates one more time in its current tightening cycle, economists say, and then shift to policy easing next year as inflation cools and economic growth slows to a crawl.

The Reserve Bank will stand pat for two more meetings and then hike in November to take the cash rate to a 12-year high of 4.35%, a survey of economists showed. Still, three of the nation’s four major lenders dissented: with ANZ Group Holdings Ltd., Commonwealth Bank of Australia and Westpac Banking Corp. predicting the current 4.1% as the terminal rate.

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