ANZ, one of Australia’s big four banks, has predicted the country’s cash rate to soar to over three percent in 2022.
In a July 19 report, ANZ expected the Reserve Bank of Australia (RBA) to raise the cash rate by 0.5 percent in August, September, October, and November consecutively, bringing the rate to 3.35 percent by the end of the year.
In addition, ANZ head of Australian economics David Plank said it was possible for the RBA to lift the rates by more than 0.5 percent in one of its upcoming board meetings.
“At this stage, our thinking is that the cash rate will need to remain at this restrictive setting for an extended period, given persistence in core inflationary pressures,” he forecast….