<\/p>\n
Reserve Bank of Australia\u2019s Governor Michele Bullock is expected to keep rates on hold come Tuesday but the country\u2019s big four banks have wild expectations about what happens next. Picture: NewsWire \/ Christian Gilles<\/p>\n
Australia\u2019s four biggest banks have finally named the dates interest rate cuts will hit struggling homeowners \u2013 but there\u2019s a savage catch hiding in the fine print.<\/p>\n
For the first time, the big four are united on one thing: cuts are coming \u2013 but everything else is a war zone, according to Canstar analysis.<\/p>\n
<\/p>\n
Canstar data insights director Sally Tindall. Picture: Tim Hunter.<\/p>\n
ANZ was the last to blink, on Friday finally abandoning its stubborn \u201crates on hold forever\u201d stance and joining CBA and NAB in tipping two cuts will happen in 2027 \u2013 relief that would drag the cash rate from 4.35 per cent down to 3.85 per cent.<\/p>\n
For millions of mortgage-crushed Australians, 2027 cannot come fast enough.<\/p>\n
But Westpac just threw a grenade into the room, with Australia\u2019s second-biggest bank still holding onto a shock belief that the RBA will hike rates \u2013 and that it won\u2019t just be once but twice more before Christmas.<\/p>\n
<\/p>\n
Current big four cash rate forecasts. Source: Canstar.com.au<\/p>\n
If it\u2019s right, borrowers are in serious belt-tightening territory, with a $1 million mortgage holder staring down an eye-watering $606 extra every single month compared to January \u2013 which would be the brutal cumulative toll of four hikes across 2026.<\/p>\n
Those with $600,000 owing would be slugged an extra $364 a month in such a situation compared to the start of the year, and for $800,000 borrowers, it\u2019s $485 gone every month, before a single cut arrives.<\/p>\n
Under Westpac\u2019s scenario, there will be no interest rate cuts until 2028.<\/p>\n
<\/p>\n
Impact of a further 0.25 hike on monthly repayments. Source: Canstar.com.au<\/p>\n
Canstar data insights director Sally Tindall didn\u2019t sugar-coat it either.<\/p>\n
\u201cIf you\u2019ve got a mortgage, make sure you\u2019re still preparing for further hikes,\u201d she warned, \u201cuntil inflation gets well and truly back into the highly evasive target band.\u201d<\/p>\n
Tuesday\u2019s RBA meeting is almost certain to deliver a hold \u2013 but Ms Tindall warned Aussies not to mistake silence for safety. <\/p>\n","protected":false},"excerpt":{"rendered":"Reserve Bank of Australia\u2019s Governor Michele Bullock is expected to keep rates on hold come Tuesday but the…\n","protected":false},"author":2,"featured_media":636487,"comment_status":"","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[11],"tags":[84,1294,56,54,55],"class_list":["post-636486","post","type-post","status-publish","format-standard","has-post-thumbnail","category-economy","tag-business","tag-economy","tag-uk","tag-united-kingdom","tag-unitedkingdom"],"_links":{"self":[{"href":"https:\/\/www.newsbeep.com\/uk\/wp-json\/wp\/v2\/posts\/636486","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.newsbeep.com\/uk\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.newsbeep.com\/uk\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/uk\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/uk\/wp-json\/wp\/v2\/comments?post=636486"}],"version-history":[{"count":0,"href":"https:\/\/www.newsbeep.com\/uk\/wp-json\/wp\/v2\/posts\/636486\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/uk\/wp-json\/wp\/v2\/media\/636487"}],"wp:attachment":[{"href":"https:\/\/www.newsbeep.com\/uk\/wp-json\/wp\/v2\/media?parent=636486"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.newsbeep.com\/uk\/wp-json\/wp\/v2\/categories?post=636486"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.newsbeep.com\/uk\/wp-json\/wp\/v2\/tags?post=636486"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}