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<\/p>\nAustralian households will have to pay an extra $272 per month compared to the start of the year if all four major banks\u2019 interest rate calls are correct.<\/p>\n
The cash rate is forecasted to rise again in March and May, bringing rates back to 4.35 per cent – where they were held for 15 months until February last year.<\/p>\n
ANZ joined NAB, Westpac and Commonwealth Bank in predicting the Reserve Bank of Australia will hike two more times.<\/p>\n
If this happens, a household owing $600,000 on their loan with 25 years remaining would face $272 more on their monthly repayments compared to the start of the year, according to comparison site Canstar.com.au.<\/p>\n
A household with an $800,000 loan would pay an extra $363 per month, while those with a $1m loan would require an additional $453 in monthly repayments.<\/p>\n
Canstar.com.au\u2019s data insights director Sally Tindall said hawkish comments from the RBA had prompted the banks to update their predictions.<\/p>\n
\u201cCBA has joined NAB and Westpac in tipping another rate hike on Tuesday, following comments from the RBA\u2019s Deputy Governor, Andrew Hauser, which reiterated the bank\u2019s determination to rein in \u2018toxic\u2019 inflation,\u201d Ms Tindall said in a statement.<\/p>\n
\u201cHe did, however, acknowledge, more than once, that it would be a line-ball call, saying the Board has its work cut out for it next week.<\/p>\n
\u201cFrom a rate tracking perspective, the banks appear to be factoring in a hike.\u201d<\/p>\n
Analysis of Canstar\u2019s database shows 20 lenders have increased close to 400 fixed rates in the past fortnight.<\/p>\n
Meanwhile, 41 banks have hiked 184 term deposit rates.<\/p>\n
\u201cThat\u2019s two very loud canaries in the coal mine right there,\u201d Ms Tindall said.<\/p>\n
She urged mortgage holders to start preparing for higher rates and even look for alternative banks to limit the price pressures.<\/p>\n
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\u201cSwitch, haggle, do whatever it takes to get yourself on a lower starting rate in case the one rise we saw last month turns into a rate hike frenzy,\u201d Ms Tindall said.<\/p>\n
Expectations of consecutive rate hikes emerged after the United States and Israel struck Iran, sparking concerns oil prices would soar.<\/p>\n
Crude prices peaked at US$119 per barrel after Iran blocked the Strait of Hormuz \u2013 where 20 per cent of the world\u2019s oil transports through.<\/p>\n
However, inflation was rising prior to conflict erupting in the Middle East.<\/p>\n
Annual inflation was 3.8 per cent in January, well above the RBA\u2019s two to three per cent target band.<\/p>\n
Slow productivity, coupled with higher than expected GDP growth<\/a>, large government spending and energy rebates rolling off were all major factors contributing to the rise.<\/p>\n