Borrowers are being urged to brace for a lot more pain this year after the Reserve Bank raised rates for the fourth straight month and hinted at more increases to tackle surging inflation.
Three of Australia’s big four banks – ANZ, Commonwealth Bank and NAB – are expecting rate rises to continue until November while Westpac sees hikes continuing until February.
But ANZ is the most severe, expecting the cash rate to hit a 10-year high of 3.35 per cent by Melbourne Cup Day.
The cash rate on Tuesday climbed by another 0.5 percentage points to a six-year high of 1.85 per cent – up from a three-year high of 1.35 per cent.
The August increase was the fourth consecutive monthly increase, which means borrowers since May have copped 1.75 percentage points of pain – the most severe monetary policy…
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