Market watchers say data suggests prior rises are impacting inflation positively
Consensus on rate hold in February sets stage
Peter Marshall (pictured above), Mozo finance expert, voiced a widespread agreement on RBA’s decision to maintain the cash rate at 4.35% in February, suggesting that previous increases have begun to curb inflation effectively.
RBA March meeting: To hold, hike, or cut?
With the RBA meeting on March 19 approaching, experts, including those at CBA, ANZ, NAB, and Westpac, predict the cash rate will remain unchanged for the fourth consecutive time.
“There’s plenty of information coming through that suggests key indicators, such as spending, borrowing, and employment, are all showing that the rate hikes are making a difference,” Marshall said.
The consensus among the big four banks is clear, with each predicting the cash rate will stay at 4.35% in March. This agreement reflects a cautious optimism that the current rate is sufficient to continue influencing the economy towards the RBA’s targets without necessitating further hikes or premature cuts.
Interest rate cut predictions
While official interest rates are tied to inflation targets, current predictions from the big four banks vary, with most eyeing the latter part of the year for potential rate cuts.
Navigating home loan repayments amid rate uncertainty
With home prices escalating, the surge in interest rates intensifies affordability concerns. See how these rate changes have significantly increased average mortgage repayments:
For home loan borrowers facing the stress of rising repayments, Marshall recommended considering refinancing or utilising offset accounts as viable strategies to mitigate interest burdens.
“Have a look at what other rates might be available to you … and see how much you could save by switching,” Marshall said.
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