<\/p>\n
Australia\u2019s biggest banks are united in their warning of a cash rate hike within days.<\/p>\n
Australia\u2019s big four banks all now warn the next hike will be within days \u2013 with one issuing a brutal wake-up call that interest rates will reach GFC-era highs by Christmas.<\/p>\n
In a terrifying double-capitulation on Monday, Commonwealth Bank and ANZ officially abandoned their hold calls to join NAB and Westpac \u2013 uniting all big four lenders in forecasting an RBA cash rate hike to 4.60 per cent next Tuesday, September 29.<\/p>\n
Shockingly, ANZ went a step further by dropping a double-hike bombshell, predicting back-to-back rate rises in September and November that would push the cash rate to 4.85 per cent \u2013 setting official borrowing costs back to levels not seen since late 2008 at the height of the global financial crisis.<\/p>\n
<\/p>\n
Oil price and cash rate market pricing. Source: CBA<\/p>\n
<\/p>\n
CBA head of Australian economics Belinda Allen<\/p>\n
Canstar analysis reveals a 0.25 percentage point rate rise next Tuesday will add $91 a month to a $600,000 loan, $114 a month to a $750,000 loan, and $152 a month to a $1 million mortgage \u2013 and would double if ANZ\u2019s prediction of a second hike in November plays out.<\/p>\n
That would take a $600,000 mortgage\u2019s cumulative increase across five total rate hikes in 2026 to a massive $456 every single month compared to what it was in January, $570 per month for a $750,000 mortgage and an extra $759 every month for a $1m mortgage compared to how it entered 2026.<\/p>\n
<\/p>\n
ANZ\u2019s cash rate forecasts. Source: ANZ<\/p>\n
<\/p>\n
Canstar data insights director Sally Tindall.<\/p>\n
Canstar data insights director Sally Tindall said ANZ has sounded the alarm for mortgage holders who would be paying nearly half a thousand dollars extra every month compared to January which was \u201clike buying four new car tyres, not just once, but month after month\u201d.<\/p>\n
In an urgent report released Monday, ANZ head of Australian economics Adam Boyton and senior strategist Jack Chambers warned Middle East oil shocks were forcing RBA\u2019s hand.<\/p>\n
\u201cThe ongoing escalation of the conflict in the Middle East and the tendency of the RBA to view the resultant increase in oil prices as much more of an inflationary shock than a growth shock suggests that a single 25bp rate hike in November \u2026 is no longer the most likely outcome,\u201d the report said.<\/p>\n
<\/p>\n
With all the big four banks flagging a September 29 cash rate increase, homeowners are being warned to shop around.<\/p>\n
Belinda Allen, head of Australian economics for Australia\u2019s biggest mortgage lender CBA, said the bank brought forward its forecast from November as global crude surged past $US100 a barrel.<\/p>\n
\u201cOur previous call was for a rate hike in November once the full quarterly CPI confirmed the materialisation of upside risks to inflation \u2026 (but) a combination of higher oil prices, stronger-than-expected economic data and increasingly hawkish signals from the RBA had shifted the balance towards an earlier move,\u201d Ms Allen said.<\/p>\n
Ms Tindall urged homeowners to act immediately in the coming days \u2013 before the RBA makes its next cash rate call \u2013 advising borrowers to call their current bank to haggle for a lower rate or calculate the savings of refinancing to a sharper deal before the board meets.<\/p>\n","protected":false},"excerpt":{"rendered":"Australia\u2019s biggest banks are united in their warning of a cash rate hike within days. Australia\u2019s big four…\n","protected":false},"author":2,"featured_media":778311,"comment_status":"","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[11],"tags":[84,1294,56,54,55],"class_list":["post-778310","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\/778310","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=778310"}],"version-history":[{"count":0,"href":"https:\/\/www.newsbeep.com\/uk\/wp-json\/wp\/v2\/posts\/778310\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/uk\/wp-json\/wp\/v2\/media\/778311"}],"wp:attachment":[{"href":"https:\/\/www.newsbeep.com\/uk\/wp-json\/wp\/v2\/media?parent=778310"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.newsbeep.com\/uk\/wp-json\/wp\/v2\/categories?post=778310"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.newsbeep.com\/uk\/wp-json\/wp\/v2\/tags?post=778310"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}