Bad News for Homeowners: Banks Delay Forecast for Lower Interest Rates

Business News Update

Westpac has announced that its forecast for a November interest rate cut is “under review” following the Reserve Bank of Australia’s (RBA) decision yesterday.

Westpac is the latest bank to abandon hope for an interest rate cut for borrowers this year. The RBA held the cash rate at its 12-year high of 4.35 percent for August and indicated that rate cuts are off the table for the next six months.

Earlier this year, all Big Four banks had agreed on the likelihood of a rate cut in 2024. However, this timeline has been pushed back, with ANZ and NAB now predicting cuts in early and mid-2025.

Westpac, like Commonwealth Bank (CBA), had initially forecast the first interest rate cut to come in November this year. This forecast is now “under review” due to the RBA’s hawkish stance.