The Reserve Bank is expected to take the cash rate to its highest point in over a decade, as its past hikes start to bite households. 7NEWS
Commonwealth Bank is forecasting no further hikes, while Westpac and ANZ expect three over 2023.
“The determination to bring the inflation rate back into the two to three per cent target band shouldn’t be doubted,” CommSec’s Craig James said. However, James said the softening in the retail sector was unlikely to stop the rate hike, with a strong jobs market and higher migration to support spending over the year.
The agency is also seeing consumers turning to credit cards to help pay bills and buy services such as travel, up 21 per cent in demand in the December quarter.
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