Westpac chief economist Luci Ellis says a sharp downturn in Australia’s housing market will weigh on next year’s economy far more than expected, and the Reserve Bank of Australia may have already completed its rate-cutting cycle. A February rate rise is not impossible, she added, but policy is clearly restrictive and downside risks are emerging. Westpac has downgraded its 2027 forecasts for GDP, the labour market and the housing sector.

2026-11-13

Westpac chief economist Luci Ellis says a sharp downturn in Australia’s housing market will weigh on next year’s economy far more than expected, and the Reserve Bank of Australia may have already completed its rate-cutting cycle. A February rate rise is not impossible, she added, but policy is clearly restrictive and downside risks are emerging. Westpac has downgraded its 2027 forecasts for GDP, the labour market and the housing sector.