Big four banks predict three consecutive RBA rate hikes
By Jacob Shteyman
Mortgage holders are being warned interest rates could hit a 15-year high by the end of the year, as surging oil prices prompt all four big banks to tip an impending rate hike.
ANZ Bank on Thursday became the latest major lender to change its prediction for the Reserve Bank’s March meeting, after CBA, Westpac and NAB revised their calls on Wednesday.
Australia’s economy was already running too hot for the RBA’s liking, and the Middle East conflict was likely to send inflation even higher, ANZ economists Adam Boyton and Adelaide Timbrell said in a research note.
“The increased inflation risks will exacerbate those inflation concerns, creating more urgency to move quickly to contain inflation expectations,” they said.