RBA hike set to prompt extra bank rises
Peter Taylor of the Herald Sun has suggested that should the RBA lift the official cash rate by 25 basis points next week, ANZ will add another 20 basis points to take the total increase to 45 basis points, according to commentary from the bank.
He was referring to a special briefing note to clients from ANZ chief economist Warren Hogan which predicts that the RBA will aim to lift interest rates in the economy by "between 40bp (basis points) and 70bp".
"We expect this will require two 25bp increases in the (RBA's official) cash rate," Mr Hogan also said.
According to Mr Taylor, the note hints that ANZ expects the RBA to lift its official rate by 50 basis points this year, but that interest rates charged to borrowers will go up by as much as 70 points.
He added that while Mr Hogan does not specifically refer to mortgages, analysts expect rate hikes to have a "particularly potent" effect on the home loan market.
This article is brought to you by Mozo – Helping you compare interest rates