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The RBA will lift the cash rate to 3.6 per cent according to most observers.
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Nine out of 10 economists expect rate rise today
07 March 2023
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9 minute read
More than 90 per cent of economic experts expect the RBA to raise interest rates today according to a poll by Finder.
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In this month's Finder RBA Cash Rate Survey™, 42 experts and economists weighed in on future cash rate moves and other issues relating to the state of the economy.
Almost all of the 42 panellists expect the cash rate to increase 25 basis points to 3.6 per cent today.
Head of consumer research at Finder Graham Cooke said this was the most dramatic series of rate rises in many homeowners' lifetimes.
"The rate increases so far have already added around $12,000 per year to the average 30-year mortgage,” he said.
"Finder's Consumer Sentiment Tracker shows that 52 per cent of Australians are feeling financial stress due to the increased costs, with younger Australians experiencing the highest amount of worry.”
Matthew Greenwood-Nimmo from the University of Melbourne said inflation was unacceptably high and the RBA would be concerned it could become entrenched.
"Higher interest rates will help to manage inflation and keep inflation expectations anchored at appropriate levels,” Mr Greenwood-Nimmo said.
Anthony Waldron from Mortgage Choice also expected the bank to move.
“I expect the Reserve Bank to raise the cash rate in March in its continued effort to contain inflation, however we are likely nearing the end of this rate rise cycle," he said.
However, more than half of experts (55 per cent) believed the RBA would hold the cash rate in April.
"We've seen several survey results expecting a pause in rate rises over the last few months, but this is the strongest result yet," Mr Cooke said.
"While inflation has yet to be calmed, homeowners deserve a break from the relentless increase in pressure.
More than a third (36 per cent) of Aussie homeowners said they struggled to pay their mortgage in February, according to Finder's Consumer Sentiment Tracker.
Most of the experts agreed the RBA needed reform and most thought it should release more details of the board's decision-making, with more explanatory announcements and press conferences.
Finder also found that a staggering 13 per cent of Australians – equivalent to 2.6 million people – have been forced to find a more affordable property as the cost of living bites.
A further 8 per cent of Aussies are moving to a cheaper rental as affordability worsens.
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