The Paris-based OECD is expecting Australian interest rates in 2023 to hit an 11-year high of 3.6 per cent as inflation pressures worsen.
The international finance experts are even more worried about rising interest rates than three of Australia’s Big Four banks.
Australian home borrowers have since May copped five consecutive monthly increases, taking the cash rate in September to a seven-year high of 2.35 per cent.
The end of the record-low 0.1 per cent cash rate has seen the Reserve Bank of Australia deploy the most severe monetary policy tightening since 1994.
But the OECD is predicting more pain and an 11-year high cash rate of 3.6 per cent in Australia next year.
‘Further policy rate increases are needed in most major advanced economies to ensure that forward-looking measures of real interest rates become positive and inflation pressures are reduced durably,’ it said.
‘Policy interest rates are projected to rise to 4.5 to 4.75 per cent in the United States, 4.5 per cent in…