Received

Most economists expect another rate hike before Christmas but opinions on cash rate movements in the new year are divided.

While the Reserve Bank governor has left his options open ahead of the year's final cash rate decision on Tuesday, many economists and experts have their money on another 25 basis point hike for December.

A Finder survey of 40 experts and economists found almost 90 per cent expect a 0.25 percentage point lift next week, which will take the cash rate to 3.1 per cent.

But less than half expect the central bank to lift rates again in February.

Impact Economics and Policy's Angela Jackson expects more interest rate rises next year as economic conditions worsen.

"Current economic conditions warrant a tightening of monetary policy and while expecting increases to slow in 2023, consider three to four more rises over the next year likely," she said.

AMP Capital's Shane Oliver said a rate hike in December was likely, but it was possibly the central bank's last in this tightening cycle.

He said enduringly high inflation, strong jobs and wages data and the absence of an RBA meeting in January would be enough to trigger another 0.25 per cent hike in December and possibly another in February.

"But by the end of 2023 we expect weak growth and a sharp fall in inflation to drive the start of rate cuts," Dr Oliver said.

For the average mortgage holder, a 25bp hike in December will add $897 to monthly repayments compared to the beginning of the rate hiking cycle earlier this year.

Mortgage holders have been dodging the worst of the rate rises by refinancing their home loans at a lower interest rate.

Australian Bureau of Statistics data released on Friday revealed refinancing stuck around record levels despite total new loan commitments dipping 2.7 per cent over the month of October.

ABS wealth and finance spokesperson Katherine Keenan said monthly owner-occupier refinancing between lenders remained well above pre-pandemic levels, with investor refinancing activity also consistently elevated.

"The RBA cash rate increased 225 basis points between June and October 2022, which coincided with a greater number of borrowers seeking loans with lower interest rates from competing lenders," Ms Keenan said.

New home loan commitments have been tapering off to coincide with the rate rises, with the value of new owner-occupier loan commitments falling 2.9 per cent in October.

BIS Oxford Economics senior economist Maree Kilroy said the softening in home loans commitments aligned with expectations, with the pace of monthly declines easing somewhat.

Ms Kilroy said government schemes designed to help first home buyers get into the market, such as the expanded first home guarantee scheme, would offset some of the drag on housing demand caused by rising interest rates

"Combined with the deterioration in rental affordability, first home buyer demand should stabilise and help to put a floor under property prices at the lower end of the market," she said.

© AAP 2022

The Reserve Bank governor has left his options open ahead of the final cash rate decision of the year, with experts leaning towards another rate rise for December.

Speaking on a panel of central bankers on Friday, Philip Lowe said it was possible to execute a soft landing for the economy.

"But it's going to be pretty easy to be knocked off it, and our priority will be to get inflation back to target over the next couple of years," he said at the Bank of Thailand and Bank for International Settlements conference.

But Dr Lowe also doubled down on the lagging effect of interest rate rises.

"It's quite possible that the lags will be longer this time, partly because of all the savings that people did in the last couple of years."

The RBA governor also revisited his thinking about longer-term inflationary patterns, arguing that the world was likely passing the era of consistently low inflation.

Thanks to emerging supply-side challenges including de-globalisation and climate change, he expects to see inflation move up and down more dramatically.

For Dr Lowe, the spike in interest rates could be described as the first test in a new economic landscape characterised by fluctuating inflation.

"We really want people to believe and understand that when inflation moves away from target ... that it will come back.

"If people don't believe that, then deviations of inflation from target will be more persistent, and it'll be harder to get it to come back."

The Reserve Bank has an inflation target band of two to three per cent.

Dr Lowe's words set the scene for the year's final cash rate decision on Tuesday.

Many economists and experts tip another 25 basis point hike for December.

A Finder survey of 40 experts and economists found almost 90 per cent expect a 0.25 percentage point lift, which will take the cash rate to 3.1 per cent.

AMP Capital's Shane Oliver said the RBA board would likely be debating a 25 basis point lift or a pause for December.

"The monthly consumer price index and lags support the former but our base case is the latter given stronger than expected jobs and wages data, and no meeting in January," he wrote on Twitter.

Impact Economics and Policy's Angela Jackson expects more interest rate rises next year as economic conditions worsen.

"Current economic conditions warrant a tightening of monetary policy and while expecting increases to slow in 2023, consider three to four more rises over the next year likely," she said.

For the average mortgage holder, a 25bp hike in December will add $897 to monthly repayments compared to the beginning of the rate hiking cycle earlier this year.

Savvy mortgage holders have been dodging the worst of the rate rises by refinancing their home loans at a lower interest rate.

Australian Bureau of Statistics data released on Friday revealed refinancing at record levels despite total new loan commitments dipping 2.7 per cent over the month of October.

ABS wealth and finance spokesperson Katherine Keenan said monthly owner-occupier refinancing between lenders remained well above pre-pandemic levels, with investor refinancing activity also consistently elevated.

"The RBA cash rate increased 225 basis points between June and October 2022, which coincided with a greater number of borrowers seeking loans with lower interest rates from competing lenders," Ms Keenan said.

New home loan commitments have been tapering off to coincide with the rate rises, with the value of new owner-occupier loan commitments falling 2.9 per cent in October.

© AAP 2022

Prosecutors are no longer pursuing sexual assault charges against the man accused of raping ex-Liberal staffer Brittany Higgins due to the impact on her mental health.

A spokeswoman for Ms Higgins confirmed she had been admitted to hospital after an "unrelenting" few years since she went public with her allegations.

Bruce Lehrmann was charged with sexual intercourse without consent and was on bail awaiting a new trial in the ACT Supreme Court after juror misconduct derailed the first.

Ms Higgins alleged Lehrmann raped her in March 2019 inside the office of former Liberal defence industry minister Linda Reynolds, when they both worked there as staffers.

He has denied the allegation and maintained the pair never had any sexual interaction.

ACT Director of Public Prosecutions Shane Drumgold announced he would no longer proceed with the case, due to evidence about the effects of another trial on Ms Higgins' mental health.

"I have recently received compelling evidence from two independent medical experts that the ongoing trauma associated with this prosecution presents a significant and unacceptable risk to the life of the complainant," he said.

He said he still held the view that there was a reasonable chance of conviction, but the prosecution would not be pursued.

"Whilst the pursuit of justice is essential for both my office and for the community in general, the safety of a complainant in a sexual assault matter must be paramount," he said.

"I have made the difficult decision that it is no longer in the public interest to pursue a prosecution at the risk of the complainant's life."

Mr Drumgold had previously indicated he would proceed with a retrial in February.

He noted Ms Higgins had faced "a level of personal attack" that he had not seen in more than 20 years in the legal profession.

"She has done so with bravery, grace and dignity and it is my hope that this will now stop and Ms Higgins will be allowed to heal," he said.

Emma Webster, a close friend of Ms Higgins, said the past few years had been "difficult and unrelenting" and confirmed she was in hospital receiving treatment and support.

"While it's disappointing the trial has ended this way, Brittany's health and safety must always come first," Ms Webster said.

Advocates are urging law reform in the wake of the case to reduce the impacts on sexual assault complainants.

The Global Institute of Women's Leadership, of which Ms Higgins is a member, said the case demonstrated the toll of sexual assault prosecutions.

"There is a clear need for ongoing law reform and practical changes in both the criminal justice system and the laws, processes and institutions that prohibit workplace harassment and ensure safe, respectful workplaces," the institute said in a statement.

"The personal price she has paid has been astronomical.

"We cannot continue to expect individuals to pay such a price in the pursuit of justice, let alone systemic change."

Greens senator Larissa Waters said Ms Higgins had shown strength and resilience and that her party would push for procedural protections to be rolled out nationally.

"To end Australia's culture of sexual violence, harassment and abuse we must start by supporting victims to come forward, and dismantling power imbalances and gender stereotypes that deter them from doing so," she said.

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© AAP 2022