Westpac Predicts 3 More Interest Rate Hikes

0:00It's March 31st. You're listening to Sydney News today, AI-powered local news. WestPak, one of our big four banks, is calling for three more interest rate hikes this year, blaming the ongoing mess in the Middle East. That would push the cash rate up to 4.85%, a level we haven't seen since November 2008, right after the global, financial crisis. The trigger? Fuel prices spiking from that conflict, with the bank expecting inflation to hit 5.4% in the June quarter. They figure the reserve bank will play it safe, hiking rates in May, June, and August to keep things in check. Homeowners are going to feel the burn, with mortgage repayments jumping higher after each move. Just on February 3rd, the RBA bumped the cash rate to 4.10%, as inflation stayed way above the 2-3% target. Treasurer Jim Chalmers tried pinning it on everyday Aussies, but RBA Governor McKelle Bullock set the record straight, saying government spending is, fueling demand and inflation

1:01straight facts, no debate. The government's half-cut on fuel excise helps petrol a bit, but it skips aviation fuel, plastics, and other hits from the chaos. Next RBA meeting drops, May 5th could be the first sign of more pain ahead.