![\"Jonathan](\"https:\/\/www.newsbeep.com\/uk\/wp-content\/uploads\/2026\/11\/Jonathan_Barrett.png\")
Jonathan Barrett<\/p>\nKey events<\/p>\n
Jonathan Barrett<\/p>\n
CBA forecasts home prices to fall by 14%<\/p>\n
Australia\u2019s biggest lender, Commonwealth Bank, now expects national dwelling prices to suffer a peak-to-trough fall of about 14% amid souring economic conditions.<\/p>\n
The bank, which had previously forecast prices to fall by 9%, revised its forecasts today ahead of what is expected to be the fifth interest rate rise this year.<\/p>\n
CBA senior economist Trent Saunders said the price downturn had accelerated to capture mid-sized state capitals Brisbane and Perth<\/a>.<\/p>\n Saunders expects prices to stabilise late next year.<\/p>\n The revised outlook aligns with CBA\u2019s updated economic forecasts<\/a>, which warn that the prolonged conflict in the Middle East is helping trigger a \u201csharper, longer slowdown\u201d.<\/p>\n While most economists had anticipated low double-digit falls in Australian property prices, several now expect peak-to-trough drops of about 15%.<\/p>\n Photograph: Lukas Coch\/AAPShare<\/a><\/p>\n Updated at\u00a021.56 EST<\/p>\n \u2018Sharper, longer slowdown\u2019 predicted for Australian economy<\/a> as fifth interest rate hike looms<\/p>\n Australia\u2019s economy is set for a \u201csharper, longer slowdown\u201d, major bank economists say, as the Reserve Bank is forced to keep interest rates higher to rid the nation of persistent inflationary pressures.<\/p>\n The RBA is widely expected to hit mortgage holders with a fifth rate hike<\/a> on Tuesday, in a move that will push the cash rate to its highest since 2008 amid rising worries the economy could even be tipped into recession.<\/p>\n Belinda Allen, the head of Australian economics at CBA, said the extended Middle East conflict, collapsing house prices and a more aggressive central bank would drive real GDP down to just 1% by the middle of next year, nearly half the previous estimate of 1.8%.<\/p>\n Growth through 2027 would be barely stronger at an estimated 1.1%, according to the updated projections.<\/p>\n Read more here:<\/p>\n Share<\/a>How would your mortgage change?<\/p>\n For someone with an average-sized new mortgage of $731,000, paying a typical rate of 6.2%, a 0.25 percentage point rate increase would add about $119 to their $4,596 monthly repayments.<\/p>\n Use our loan calculator to check how a rate rise may affect you:<\/p>\n Share<\/a><\/p>\n Updated at\u00a021.42 EST<\/p>\n NSW premier warns of risk of \u2018stopping the economy dead\u2019<\/p>\n The NSW premier, Chris Minns, rejected commentary from some economists that the RBA\u2019s decision would be straightforward.<\/p>\n double quotation markI know they\u2019ve got a just difficult decision to make. I accept that, but we\u2019ve got to be careful that in their efforts to slow down the economy, they don\u2019t stop it dead.<\/p>\n This is an extra hit to a pay packet that many people haven\u2019t budgeted for, are not ready for. It\u2019s going to have a massive impact on our economy.<\/p>\n Minns said a rate hike would have a \u201cdisproportionate impact\u201d on the state\u2019s economy due to NSW\u2019s high house prices.<\/p>\n Chris Minns. Photograph: Dean Lewins\/AAPShare<\/a><\/p>\n Updated at\u00a021.03 EST<\/p>\n Anthony Albanese defended his government\u2019s record in the face of a likely rate hike.<\/p>\n The prime minister is in Saint John\u2019s, Antigua and Barbuda, for the Commonwealth heads of government meeting at the request of King Charles.<\/p>\n He has faced some criticism for being out of the country during the decision.<\/p>\n double quotation markWe work each and every day on cost of living.<\/p>\n What I recognise as well is that by engaging in the world, we can deal with our national security interests, but also make our economy stronger. That\u2019s why we need to engage in the world.<\/p>\n Anthony Albanese meets British PM Andy Burnham ahead of the Commonwealth heads of government meeting. Photograph: Kin Cheung\/ReutersShare<\/a><\/p>\n Updated at\u00a020.52 EST<\/p>\n Chalmers flags more \u2018savings\u2019 in next federal budget <\/p>\n Asked why Labor can\u2019t guarantee it won\u2019t find net savings in the mid-year budget update, Jim Chalmers told RN the government is undertaking that task this month ahead of December\u2019s release.<\/p>\n double quotation markWe are currently working our way through the spending pressures, the economic forecasts, and the savings options to come up with the best, most responsible budget update that we can.<\/p>\n There have been savings in all eight of our budget updates so far. There\u2019ll be savings in the ninth as well.<\/p>\n The powerful expenditure review committee met on Monday, and will convene again on Wednesday to discuss savings, Chalmers said.<\/p>\n Jim Chalmers. Photograph: Lukas Coch\/AAPShare<\/a><\/p>\n Updated at\u00a021.44 EST<\/p>\n Chalmers says Australians bracing for ‘difficult decision’ The treasurer, Jim Chalmers, told ABC\u2019s RN Australians are bracing for a \u201cdifficult decision\u201d ahead of an expected rate hike.<\/p>\n Another rise would likely increase the cash rate to 4.85%, taking it to the highest level in 18 years.<\/p>\n double quotation markPeople are under substantial pressure already, and obviously, if rates go up today, that will make things much harder, especially when there are already a number of rate rises in the system and their full effect hasn\u2019t been felt yet.<\/p>\n Regardless of the decision that the Reserve Bank takes independently this afternoon, we know that there is more work to do to make the budget as tight as it can be.<\/p>\n![\"Patrick](\"https:\/\/www.newsbeep.com\/uk\/wp-content\/uploads\/2026\/11\/Patrick_Commins.png\")
Patrick Commins<\/p>\n![\"Tess](\"https:\/\/www.newsbeep.com\/uk\/wp-content\/uploads\/2026\/11\/Tess_Ikonomou.png\")
Tess Ikonomou<\/p>\nTess Ikonomou<\/p>\nTess Ikonomou<\/p>\nTess Ikonomou<\/p>\n