Bank’s huge interest rate prediction amid tariff fallout: ‘Careful what you wish for’
US President Donald Trump’s “Liberation Day” tariffs have wreaked havoc on financial markets but could force the Reserve Bank of Australia to deliver more mortgage relief sooner.ANZ Bank — until recently the most hawkish of the big four banks — on Friday upped its interest rate cut predictions due to the carnage US tariffs are expected to inflict on the global economy.WATCH THE VIDEO ABOVE: US markets shed billions in major reaction to tariffs.Know the news with the 7NEWS app: Download today After previously predicting just one more rate cut, the bank’s economists now believe the RBA will deliver three more 25-basis point cuts by August.That would bring the cash rate down to 3.35 per cent, saving the average mortgage holder an additional $269 a month in repayments.ANZ thinks a mega 50-basis point cut at the central bank board’s next meeting in May is on the cards, as insurance against an expected collapse in business and consumer confidence.“On the information we have to hand, the mark...