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Housing downturn will prompt RBA rate cuts in 2023

With the RBA set to hike the cash rate to 3% by early-2023, we now expect house prices to fall by 15% from their April peak. While the economy has considerable momentum from reopening in the near-term, plunging house prices will weigh on consumer spending and dwellings investment and force the RBA to cut interest rates in late-2023.

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