Brutal bank warning: Aussies face west’s highest interest rates

All four big banks are aligned on a more aggressive rate path for the Australian economy. Aussies are facing the highest interest rates in the Western world – with little they can do amid a brutal warning by the biggest banks that relief is being pushed out by a shock period. Interbank futures price Australia’s cash rate to surge to a staggering 4.99 per cent by mid-2027, according to ANZ Research – the highest peak interest rate in the Western developed world. RBA Governor Michele Bullock is facing increased pressure to move on rates as inflation proves stubborn. Picture: NewsWire / Christian Gilles ANZ Research found Australia’s current 4.35 per cent cash rate is already higher than almost every major economy in the Western world including New Zealand, the eurozone, the UK, Canada and the US. According to analysis of interbank futures by ANZ Research, Australia’s projected 4.99 per cent cash rate peak sits well above all major Western peers – with the US expected to top out at 4.25 per cent, the UK at 3.75 per cent, New Zealand at 3.00 per cent, the eurozone at 2.75 per cent and Canada at just 2.50 per cent. This as a grim new consensus has emerged across Australia’s largest lend...