What are the banks predicting for interest rates for 2024?

It is the crystal ball that we would all like to own.  The merry-go-round that all home owners have been waiting for the first Tuesday of every month.

If we knew what the Reserve Bank would do on interest rates we could all make some money.

All banks are forecasting that the interest rate will remain at 4.1% until the end of 2023, except for ANZ who is predicting it will be 4.35% by the end of 2023 (I think that most of us will be hoping that ANZ is wrong).

The consensus seems to be that interest rates will be cut in 2024.

• CBA thinks the first cut will be in March 2024 and falling to 3.1% by the end of 2024.
• Westpac thinks that the first cut will be in the September 2024 quarter.
• NAB, the pessimist at the end of 2023, thinks 3.35% by end of 2024 and 3.1% in early 2025.
• ANZ is the most cautious, believing that rates will remain at 4.1% for an extended period in 2024.
• AMP believes there will be four cuts in 2024 starting in February 2024, although they don’t say how much those cuts will be.

As with all professions if you go to 5 different doctors or lawyers you can sometimes get 5 different answers, economists seem to be split on their opinions in relation to what is happening with interest rates in 2024.