{"id":38940,"date":"2022-06-07T07:43:03","date_gmt":"2022-06-06T19:43:03","guid":{"rendered":"https:\/\/propertynoise.co.nz\/au\/?p=38940"},"modified":"2022-06-07T07:44:44","modified_gmt":"2022-06-06T19:44:44","slug":"economists-market-collude-to-decimate-australian-house-prices","status":"publish","type":"post","link":"https:\/\/propertynoise.co.nz\/au\/economists-market-collude-to-decimate-australian-house-prices\/","title":{"rendered":"Economists, market collude to decimate Australian house prices"},"content":{"rendered":"

PHOTO: Australian house prices<\/strong><\/p>\n

The delusional futures market continues to forecast apocalyptic rises in Australian interest rates.<\/p>\n

As shown in the next chart, the market believes that the Official Cash Rate (OCR) will hit 2.75% by December and peak around 3.6% by June 2023:<\/p>\n

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\"Market<\/p>\n

Steepest rate rise in Australia\u2019s history.<\/em><\/strong><\/p>\n<\/div>\n

Australia\u2019s economists have also become\u00a0increasingly hawkish, ramping up their OCR projections:<\/p>\n

Capital Economics is forecasting a 25 basis point rise next week, followed by 40 basis points in August, and a rate of 3 per cent by early-2023.<\/p>\n

ANZ is one of two big-four banks tipping a 40 basis point increase next week, and is forecasting a cash rate path to about 2.5 per cent by mid-2023, before further rises to above 3 per cent after an assessment by the RBA\u2026<\/p>\n

\"real<\/a><\/div>\n
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Celebrity real estate agent shows Sydney\u2019s property market is still on fire<\/a><\/h2>\n<\/header>\n<\/div>\n

Nomura Australia senior economist Andrew Ticehurst said he was \u201cdefinitely\u201d in the camp that believed the RBA would need to act faster\u2026<\/p>\n

Peter Tulip, chief economist at the Centre for Independent Studies\u2026 said the RBA should raise rates \u201caggressively\u201d\u2026<\/p><\/blockquote>\n

Last month, freelance journalist Tarric Brooker\u00a0showed\u00a0that mortgage interest payments would experience their biggest ever rise if the economists\u2019 let alone the market\u2019s OCR projection came to fruition.<\/p>\n

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Building firm fires all staff on the spot<\/a><\/h2>\n<\/header>\n<\/div>\n

Brooker\u2019s analysis was based on the following OCR forecasts:<\/p>\n