image sourced from original article at Australian mortgage holders may have to wait until 2028 for an interest rate cut, with Westpac forecasting three additional rate rises in May, June and August 2026. If delivered, the increases would push the cash rate to 4.85 per cent, marking the highest levels since the Global Financial Crisis in 2008 and extending financial strain for borrowers.
The bank attributes the expected hikes to surging fuel costs linked to the conflict in the Middle East and prolonged disruptions to global supply routes. Higher fuel prices are flowing quickly into broader consumer prices, prompting expectations that the Reserve Bank of Australia will tighten monetary policy further to curb inflation.
For homeowners, the impact could be significant. Analysis shows that a borrower with a $600,000 loan over 25 years could see monthly repayments rise by about $276 from the three predicted increases alone, or roughly $457 including the two hikes already implemented this year.
Meanwhile, property markets in Sydney and Melbourne are beginning to decline. Forecasts suggest home values in Sydney could fall by up to six per cent and Melbourne by up to four per cent, with further weakness possible if elevated interest rates persist into 2027.
