Mortgage holders are unlikely to receive an early Christmas present when the Reserve Bank of Australia meets next week, according to a survey of economists.
The central bank will keep interest rates on hold at 4.35 per cent when it wraps up its final board meeting of the year on Tuesday, say all 40 experts polled by comparison website Finder.
Almost half expect Australians will have to wait until next May for the first interest rates cut, while 24 per cent forecast a reduction after then.
One of the experts polled by Finder, Shane Oliver from AMP, predicted a May cut, but said current economic conditions gave the RBA room to make an earlier reduction.
“With inflation trending down and weaker than expected growth we think the RBA should cut earlier and there is still a high chance of a February cut,” he said.
The panel also offered their single piece of economic advice to a friend for next year.
Richard Holden, from the University of New South Wales said simply “Pray”.
But others gave more detailed guidance.
“Save and don’t spend. Focus on essentials and not the nice to haves. Teach your children the basics of financial management including how to save,” said Peter Boehm, of Pathfinder Consulting.
One advised potential property buyers to make their move now.
“If you want to buy property, get in before the rate cut,” said Matt Turner, of GSC Finance Solutions.
“We are certainly getting a feel from our client base that there will be renewed optimism in the property market once that first cut hits and it will definitely be a mental barrier to bring buyers back to the market.”
More than half of experts polled (58 per cent) think the majority of Australians will be financially better off next year.
