It comes as almost a quarter of Australian homeowners are worried about having to sell their properties due to the cost of living crisis, which has also seen mortgage repayments jump by thousands a year as interest rates skyrocketed from a low of 0.1 per cent to 4.35 per cent.
The banking expert said while this is offering welcome relief, economists are concerned it is not enough. “It is arguable whether an increase in the cash rate would impact greatly on most of these necessary and inelastic expense items,” he added.The big four forecasts Newly appointed Chief Economist at Westpac, Luci Ellis. Previously she was the former assistant governor and senior economist with the Reserve Bank. Jane Dempster/The Australian.
decision for an increase in the minimum wage not much below last year’s outsized result, even though inflation is much lower one year on,” she said. “The Fed indicated that rate cuts will be held off until the Bank gains greater confidence that sufficient progress has been made on taming inflation – but it also dismissed fears of any rise. I see the same happening here.”
“But following the March quarter, these two categories then don’t tend to add any more to inflation for the next three quarters – so in effect they’re now out of the inflation equation until March 2025.”However Dr Rynne warned the actions of policymakers will be crucial to an interest rate cut. “In comparison to other economies, Aussies really feel the pinch of every cash rate hike, and this can be seen in the exorbitant amount of interest now being paid on mortgages down under,” said Mozo banking and rates expert Peter Marshall.