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Goldman, Commonwealth Bank at Odds Over Australia’s Rate Outlook
Commonwealth Bank of Australia, the nation’s largest lender, reckons policy makers in Sydney are near the peak of their tightening cycle, while Goldman Sachs Group Inc. sees interest-rate hikes persisting into 2023. The diverging views over the terminal cash rate -- CBA has one more hike next week to 3.1% while Goldman predicts five more to 4.1% in May -- highlight contrasting assessments of the capacity of the A$9.7 trillion ($6.5 trillion) housing market to weather the sharpest tightening cycle since 1994. CBA’s Gareth Aird reckons extending hikes into next year will overburden households already groaning under ... (full story)