ANALYSIS: Sky-high mortgages, surging inflation and real wages down: Buckle in for a bumpy financial year ahead
The Conversation's 2022-23 forecasting survey predicts an increase in the Reserve Bank's cash rate from its presentIf fully passed on, the series of rate hikes would lift the cost of payments on a variable $500,000 mortgage by about $600 per month and the cost of payments on a $800,000 mortgage by about $1,000 per month.
On balance the panel expects inflation to peak at 7.1 per cent towards the end of this year before declining next year.The panel expects the equivalent of five 0.25 point increases in the Reserve Bank's cash rate in the next six months, and just short of another two 0.25 point increases in the six months that follow.
Warwick Mckibbin, a former member of the Reserve Bank board, expects a cash rate of 4.5 per cent by March, and he says that is less than required. Former Commonwealth Treasury and financial markets economist Warren Hogan sees rates climbing for as many as five years, although his forecast is for four.
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