You either struggle with basic comprehension, or you are deliberately misrepresenting what i said. '...I think we will see a plateau once the cash rate reaches 1%...'
Where did I say it would peak at 1%?
It appears the Head of Australian economics at the CBA agreed with me...
Our central scenario has the cash rate climbing to 1.25% by Q1 23 where it is forecast to stay over the remainder of 2023.
We assess 1.25% to be the neutral cash rate and therefore at this stage we believe once the cash rate is at that level it is the logical place for the RBA to pause in its tightening cycle – there is also a significant expiry of fixed rate home loans in 2023 which will create a natural tightening over 2023, even with the RBA on hold.
By Gareth Aird, head of Australian economics at CBA
