JUDO BANK DECLARES RESERVE BANK WILL HIKE INTEREST RATES THREE TIMES
- Judo Bank predicting three interest rate rises in 2024
- A 5.1 per cent cash rate would be highest since 2008
- READ MORE: Why latest inflation data bad for borrowers
The Judo bank is now forecasting the Reserve Bank will raise interest rates three times in 2024 to levels unseen in 16 years.
The bank's chief economic adviser Warren Hogan predicts the cash rate will climb to 5.1 per cent by Christmas, up from an existing 12-year high of 4.35 per cent.
This would see the Reserve Bank of Australia cash rate reach a level last seen in December 2008 during the Global Financial Crisis.
Until Wednesday, the likes of the Commonwealth Bank were forecasting three rate cuts in 2024 but some higher-than-expected inflation has made economists re-evaluate their forecasts.
While annual headline inflation in the March quarter fell to 3.6 per cent, an underlying measure of inflation showed prices still surging by 4.4 per cent.
This is well above the Reserve Bank's 2 to 3 per cent target.