Big bank predicts back-to-back cash rate hikes
ANZ is predicting the Reserve Bank will hike the cash rate in September and November, echoing the forecasts of Australia’s other three big banks.
The bank predicts a hike of 0.25 at each of the next two meetings, which would take the cash rate to 4.85 per cent.
ANZ Bank is predicting the Reserve Bank will hike the cash rate in September and November. AAP
The forecast comes as the RBA prepares to meet next week, with the decision to be delivered on September 29.
Westpac, NAB and CBA have all predicted a 0.25 per cent hike next week but have yet to lock in their forecasts for the November meeting.
A 0.25 hike this month would add $91 to the monthly repayments for a borrower with a $600,000 loan at the start of the hikes in 2026 and 25 years remaining, according comparison website Canstar.
A further 0.25 hike in November could increase repayments by another $92.
The predicted September hike could mean an extra $114 in monthly repayments for those with a $750,000 loan and an additional $152 a month for those with a $1 million loan.
Canstar.com.au data insights director Sally Tindall said the bank expected the RBA to hike twice before the end of the year, increasing the cash rate to its highest setting since the Global Financial Crisis in 2008.
“While ANZ is the only major bank to officially put a second hike in its forecast, borrowers with a mortgage should not rule out this possibility,” Tindall said.
“The board has consistently stated it will do whatever it takes to tame inflation.
“Given the resilience of borrowers to date, this could mean two hikes, not one.
“If the RBA delivers back-to-back hikes in September and November, a borrower with a $600,000 mortgage and 25 years remaining will see their minimum monthly repayments jump by around $183, but that’s just the potential increase from hereon in.
“Borrowers could well have just eight more days to get themselves on a lower rate before the RBA makes its next cash rate call.
“At a minimum, call your bank and haggle, but also do the maths on refinancing, because often customers have to pick up their mortgage and take it to a different lender to get themselves on one of the sharpest rates.”
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