{"id":37901,"date":"2022-04-07T17:43:51","date_gmt":"2022-04-07T05:43:51","guid":{"rendered":"https:\/\/propertynoise.co.nz\/au\/?p=37901"},"modified":"2022-04-07T17:43:51","modified_gmt":"2022-04-07T05:43:51","slug":"when-will-interest-rates-rise-and-how-high-will-they-go","status":"publish","type":"post","link":"https:\/\/propertynoise.co.nz\/au\/when-will-interest-rates-rise-and-how-high-will-they-go\/","title":{"rendered":"When will interest rates rise and how high will they go?"},"content":{"rendered":"

PHOTO: Most economists expect interest rates to rise at least 1 percentage point over the next year.(ABC News: Alistair Kroie\/John Gunn<\/span><\/span>)<\/cite><\/strong><\/p>\n

It’s the key question for several million mortgage borrowers: When will the Reserve Bank start raising interest rates and how high will they go?<\/p>\n

Unfortunately, there’s no clear answer. It was only months ago that the Reserve Bank was still hinting that rates probably wouldn’t rise until 2024.<\/p>\n

That’s long since been blown out of the water, and now it’s considered a near certainty that rates will rise this year, the only doubt being exactly when.<\/p>\n

This week’s RBA meeting has offered some further hints, and has caused a lot of experts to bring forward their forecasts for the first rate rise, with a growing consensus forming around June, although some still see August as a more likely lift-off date.<\/p>\n

So, what should you be watching for as a sign the Reserve Bank is about to move, and how high will rates go when it does?<\/p>\n

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Economists now generally expect the RBA board to start raising rates in June, or by August at the latest.(ABC News: John Gunn<\/span><\/span>)<\/cite><\/strong><\/em><\/figcaption><\/figure>\n

What changed this week?<\/h2>\n

Before the\u00a0RBA meeting on Tuesday, the bank had repeatedly said in its public statements that it was “prepared to be patient” before lifting its official interest rates.<\/p>\n

That phrase was conspicuously absent this week.<\/p>\n