Judo Bank boss Warren Hogan declares Reserve Bank will hike interest rates three times this year - and he was right about 2023

The Judo Bank is present forecasting the Reserve Bank volition rise involvement rates 3 times successful 2024 to levels unseen successful 16 years.

The bank's main economical advisor Warren Hogan predicts the currency complaint volition ascent to 5.1 per cent by Christmas, up from an existing 12-year precocious of 4.35 per cent. 

This would spot the Reserve Bank of Australia currency complaint scope a level past seen successful December 2008 during the Global Financial Crisis. 

Until Wednesday, the likes of the Commonwealth Bank were forecasting 3 complaint cuts successful 2024 but higher-than-expected inflation data, released connected Wednesday, has made economists re-evaluate their forecasts.

While yearly header ostentation successful the March 4th fell to 3.6 per cent, an underlying measurement of ostentation showed prices inactive surging by 4.4 per cent.

This is good supra the Reserve Bank's 2 to 3 per cent target. 

Mr Hogan, a erstwhile main economist astatine ANZ, said ostentation was higher than the Reserve Bank was expecting, contempt astir Australian borrowers being connected a adaptable complaint mortgage.

'They were hoping we could bash little than the remainder of the satellite due to the fact that we were much exposed to the nominal transmission of monetary argumentation done adaptable complaint mortgages,' helium told The Australian Financial Review.

'We conscionable request to present get up to the [cash rate] level that different countries are, astatine 5 per cent.'

Even with 3 complaint rises, an Australia currency complaint astatine 5.1 per cent would inactive beryllium little than New Zealand's 5.5 per cent and Canada's 5 per cent. 

Australian borrowers person already endured 13 complaint rises successful 18 months, betwixt May 2022 and November 2023, and they were already the astir assertive hikes since 1989.