Inflation expectations drop
The interest rate hikes are working their magic
2-year inflation expectations fell to the lowest level since February 2022, according to the latest ANZ-Roy Morgan survey.
This sort of reading is consistent with inflation returning to the target range.
Good news, even in the face of a recent rise in fuel prices.
Crucially, rising fuel prices should now lead to lower consumption (unlike during the pandemic when the stimulus cheques were flying around and household savings rates were at very high levels).
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ANZ cut its 3-year fixed mortgage rates by 30 basis points this week.
Source: ANZ, broker channels
H/t Eric Wu, broker channels.
