National Australia Bank to reduce interest rates

National Australia Bank (NAB) expects interest rates to reach 3.85 percent, after previously expecting it to be 4.1 percent, and expects the Reserve Bank of Australia to increase its official cash rate by 25 basis points in April.

NAB predicts the interest rate and basis point incline to be the last time, and is likely to be followed by rate cuts in the first half of 2024.

“We continue to see rate cuts in H1 2024 bringing the cash rate back to 3.1 percent as the economy slows and unemployment rises,” said the bank’s chief economist, Alan Oster.

Australian bank, Westpac, also expects a lower interest rate to be announced, reaching 3.85 percent.