Westpac: Housing Shock Far Exceeds Expectations; RBA May Have Finished Cutting Rates

According to Jin10, Westpac Banking Corporation Chief Economist Luci Ellis expects Australia's sharp housing market downturn to have a much greater-than-expected impact on the country's economy next year, and believes the Reserve Bank of Australia (RBA) may have finished cutting rates. A rate hike in February is not entirely out of the question, but policy is clearly restrictive and downside risks are emerging. Westpac lowered its forecasts for 2027 GDP, the labor market, and the housing sector.