Tuesday 9 August 2022 07:43 AM Melbourne couple mocked for 'impulse buying' a $1.5 million dollar home trends now

Tuesday 9 August 2022 07:43 AM Melbourne couple mocked for 'impulse buying' a $1.5 million dollar home trends now
Tuesday 9 August 2022 07:43 AM Melbourne couple mocked for 'impulse buying' a $1.5 million dollar home trends now

Tuesday 9 August 2022 07:43 AM Melbourne couple mocked for 'impulse buying' a $1.5 million dollar home trends now

BY STEPHEN JOHNSON FOR DAILY MAIL AUSTRALIA

The Reserve Bank of Australia has given the strongest hint it may start cutting interest rates in 2024 after imposing the steepest increases in almost three decades.

Borrowers in August have copped yet another 0.5 percentage point increase, taking the cash rate to a six-year high of 1.85 per cent.

This has seen a borrower with an average $600,000 mortgage endure another $169 in their monthly mortgage repayments - the fourth consecutive rate rise for Australian homeowners since May.

But the Reserve Bank, in a new 71-page monetary policy statement released last Friday, hinted it may start cutting interest rates again as inflation moderated.

The Reserve Bank of Australia has given the strongest hint is may start cutting interest rates in 2024 after imposing the steepest increases in almost three decades (pictured is governor Philip Lowe)

The Reserve Bank of Australia has given the strongest hint is may start cutting interest rates in 2024 after imposing the steepest increases in almost three decades (pictured is governor Philip Lowe)

'The forecasts are based on some technical assumptions,' it said. 

'The path for the cash rate reflects expectations derived from surveys of professional economists and financial market pricing, with the cash rate assumed to increase to around 3 per cent by the end of 2022, and then decline a little by the end of 2024.

'Market pricing suggests that policy rates will peak in the first half of 2023 at levels considerably higher than at the onset of the pandemic.'

A monetary policy easing in 2024 would be the first since November 2020 when the RBA cut the cash rate to a record-low of 0.1 per cent.

Reserve Bank governor Philip Lowe in 2021 repeatedly promised interest rates would not rise until 2024 'at the earliest' but in May, he raised rates for the first time since November 2010 after Russia's Ukraine invasion pushed average petrol prices above $2 a litre. 

Inflation is now expected to climb to a 32-year high of 7.75 per cent by the end of 2022, a level more than double the RBA's 2 to 3 per cent target.

This would mark a big jump from the

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