Major bank’s grim new interest rate warning

Major bank’s grim new interest rate warning

Major bank’s grim new interest rate warning One of Australia’s big four banks has revised up its expectations for Australia’s interest rate over the coming months, suggesting higher mortgage repayments for already struggling households. Westpac chief economist Bill Evans now expects the terminal interest rate to settle at 2.6 per cent up from his previous forecast of 2.37 per cent. It comes off the back of a record low rate of 0.1 per cent – introduced to help the country cope during the pandemic – which has since been raised and sits at 0.85 per cent. Earlier this month, Reserve Bank of Australia (RBA) governor Philip Lowe flagged he expected the rate to reach around 2.5 per cent, with more moves due in the coming months. “The resilience of the …
More on: thewest.com.au