National Australia Bank (NAB)

Home owners are ringing in the festive period with a present they cant re-gift, after the RBA announced a rate hike for the month of December.

Banks and entities have released new analyses and forecasts after the latest inflation data came in higher than expected.

Data averages are ‘masking’ increased mortgagor stress levels over their home loan debt, a NAB behavioural economist has explained.

Latest NAB hardship data has revealed Australians’ cost concerns and workforce changes to suit.

Following the Reserve Bank of Australia’s decision to hike the cash rate, lenders have begun adjusting their own rates, though the speed of response has varied.

The central bank’s February 25-bp cash rate hike has started flowing through to the first major banks.

Regional bank services have come under even closer scrutiny, as ADIs justify continued branch closures to a senate committee.

Most big four banks expect a 0.25 per cent rate hike today, but recent inflation data may have put 50bps back on the table.

It is highly likely another 25-bp hike is ‘coming down the chimney’ today, major bank economists have suggested.

The RBA’s November cash-rate increase to 2.85 per cent is flowing through to more Australian bank interest rates this month.

While inflation has eased slightly, Australia’s major banks have said near-term interest rate cuts remain unlikely, with their views split between a continued hold and a hike.

Headline CPI is “likely to fall back” to around 6 per cent in Q2/23, major bank NAB has envisaged.