Westpac predicts 20% house price inflation

Rebecca Howard
Thu, 21 Jan 2021

Westpac Bank took its forecast rate cuts off the table and now expects annual house price inflation to peak at 20 percent this year.On Wednesday it had been picking two 25 basis-point rate cuts in May and August, which would have taken the official cash rate to -0.25 percent.Today the bank said recent strong GDP and housing data suggests the OCR is now low enough. House price inflation is “not an environment conducive to further OCR cuts.” Westpac economists expect annual house price inflation to reach 20 percent later this yea...

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