Daily London
CBA and NAB are both now predicting a cash rate hike, potentially as early as February.
NAB also reckons it will go up in May too.
However, others banks a happier prediction, forecasting they’ll stay on hold.
Westpac has updated its cash rate forecast, predicting the RBA will keep the cash rate on hold at 3.60 per cent for the foreseeable future.
Previously Westpac’s economic team was predicting two further cash rate cuts in May and August next year, Canstar says.
However, the bank is leaving the door open to this possibility in the first half of 2027.
The shift comes on the back of recent inflation surprises and the RBA’s “more hawkish tone,” Canstar says
ANZ still expects the cash rate to remain unchanged in 2026.
When it comes to savings, there’s slightly better news
Canstar says 33 banks have hiked at least one term deposit rate so far this month.
This list includes CBA, NAB, ANZ and Westpac, which changed its term deposit special from 3.90 per cent for 11 months to 4.10 per cent for 12 months.
This compares to just 10 banks that cut at least one term deposit rate so far this month.
As a result, out of the big four banks, ANZ has the highest term deposit rate of 4.25 per cent, although it’s only for a term of eight months.
Sally Tindall, Canstar.com.au data insights director, said: “Westpac’s the last big bank to rule out the possibility of further cash rate cuts on the back of what has been a marked shift in tone from the RBA.
“The central bank has gone out of its way to put borrowers on notice that cash rate cuts are well and truly out the window, but also, hikes are now back on the table.
“While this news is a bitter pill to swallow for borrowers lugging around Santa sacks full of debt, anyone with money in the bank could start to feel a tailwind instead of a headwind in 2026 if the cash rate starts to rise.”
