Monday, 31 July 2023

Economists split over chance of August rate rise as Australian property price rebound slows

Analysts differ over whether Reserve Bank will raise the cash rate another 25 basis points in the 13th increase since May 2022

The Reserve Bank’s August interest rate decision is likely to be a coin toss, with analysts split over the prospect of another increase amid fresh signs the property price rebound is losing steam.

The central bank’s board will announce its verdict at 2.30pm AEST on Tuesday. Fifteen economists predicted the cash rate would be raised another 25 basis points to 4.35%, which would be the 13th increase since last May. But 11 forecast the RBA would extend July’s pause for another month, according to a Bloomberg survey.

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