The big four banks now predict interest rates will start rising in June after the Reserve Bank of Australia’s hawkish pivot at Tuesday’s board meeting prompted Westpac and NAB to revise their forecasts.
Westpac chief economist Bill Evans expects the cash rate, now at a record low of 0.1 per cent, to hit 1.25 per cent by year’s end, while NAB chief forecaster Alan Oster predicts 1 per cent.
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Ronald Mizen is the Financial Review’s political correspondent, reporting from the press gallery at Parliament House, Canberra. Connect with Ronald on Twitter. Email Ronald at ronald.mizen@afr.com