National Australia Bank lowers peak rate call for Australia to 3.85%, from 4.1%

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The logo of the National Australia Bank is displayed outside their headquarters building in central Sydney
The logo of the National Australia Bank is displayed outside their headquarters building in central Sydney, Australia August 4, 2017. REUTERS/David Gray

SYDNEY, March 30 (Reuters) - National Australia Bank said on Thursday it expects Australian interest rates to peak at 3.85%, down from a previous estimate of 4.1%.

NAB added it still expects the Reserve Bank of Australia to raise its official cash rate by 25 basis points in April for a final time, beginning rate cuts in the first half of 2024.

"We continue to see rate cuts in H1 2024 bringing the cash rate back to 3.1% as the economy slows and unemployment rises," the bank's chief economist Alan Oster said in a statement.

Fellow Australian bank Westpac also cut its peak rate forecast to 3.85% earlier this month.

Reporting by Stella Qiu in Sydney Editing by Alasdair Pal

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