Reserve Bank Expected to Raise Cash Rate Next Week

0:00On this March 11th in Sydney, here's what is making headlines. Economists now expect the reserve bank to raise the cash rate next week, with another possible increase in May. The bank's board meets soon and announces its decision on Tuesday, March 17th, at 2.30 pm, Australia, Eastern daylight time. Market's price in nearly a 70% chance of a hike then, up sharply from earlier this week. This shift comes, as inflation was already climbing before the Middle East conflict disrupted oil supplies and pushed prices higher. Most experts had eyed May for the next move after February's quarter percentage point rise, but recent data and events have brought forecasts forward. Leading banks like NAB and Westpac now predict hikes in both March and May, lifting the cash rate to 4.35%. Meanwhile, teams at Commonwealth Bank and ANZ stick with just one increase in May. Economists note the bank's hawkish signals from recent comments. Barrowers face higher pain, with minimum monthly repayments on an $800,000 home loan, jumping about $182.

1:05After two hikes, comparison sites warn families to brace for more pressure amid the uncertainty. Reserve bank leaders have grown impatient with sticky inflation, tight labor markets, and weak productivity. Officials stress acting decisively to avoid entrenched price rises, especially with oil shocks lingering as a risk. This DNN story comes to you thanks to our sponsor. No earbuds, no headbands, no awkward sleeping positions, just a pillow that plays your sound, S-O-L-I, solely pillow.com.