ANZ suggests house prices will fall but Official Cash Rate will continue to rise

The pressure is coming on home owners.A new forecast from the country's largest bank, ANZ, suggests house prices will fall to 18-percent of the peaks reached last year. When recent wage inflation is taken into account, the fall will be about 27-percent. ANZ Chief Economist Sharon Zollner told Mike Hosking that at the same time, interest rates are likely to keep rising -- with the Official Cash Rate likely to be raised to five-percent by February. She says the OCR has been hiked spectacularly quickly, and the hikes may continue through next year. Zollner says the OCR is likely to fall once there's a global sideswipe. LISTEN ABOVESee omnystudio.com/listener for privacy information.