Australian Interest Rates Projected to Hit Record High in Mid-2027

Australia's big four banks have aligned on an aggressive rate path for the economy, predicting interest rates will continue to rise.

The Reserve Bank of Australia (RBA) is facing pressure to increase rates as inflation remains stubborn. According to ANZ Research, Australia's current 4.35% cash rate is already higher than most major economies in the Western world.

Interbank futures suggest that by mid-2027, Australia's cash rate could reach a staggering 4.99%, surpassing other major Western peers, including the US, UK, New Zealand, and Canada.

The big four banks, CBA, Westpac, NAB, and ANZ, have forecasted not just more rate hikes but have pushed back any potential relief until August 2027.