Westpac sees OCR hitting 6%

The Herald reports:

Westpac economists have lifted their expected peak for the Official Cash Rate (OCR) to 6 per cent in a new report which highlights the inflationary risks of the surge in migration numbers.

“Monetary policy is working but a historic increase in migration looks set to add demand at an inconvenient time,” says Westpac chief economist Kelly Eckhold.

More interest rate rises would be required to finish the job, he said.

Westpac now sees the OCR rising to 6 per cent by August and remaining there until mid-2024.

If Westpac is correct, then the OCR up a further 0.75% which means floating mortgage rates could hit 9%.