Property prices in most Australian cities are expected to fall by double-digit figures after the Reserve Bank of Australia hit the interest rate brakes harder and faster than earlier forecast, crimping the size of loans households can borrow, economists say.
The RBA’s 50 basis point cash rate rise on Tuesday, the biggest in 22 years, was larger than most analysts had forecast, prompting major banks and investors to revise their estimates of the pace and size of further increases.
