The bank is forecasting inflation to be even worse, and longer lasting than previously predicted. Now expected to peak at 7.4% in the second quarter of the year.  

That in turn ANZ thinks will make the Reserve Bank raise the official cash rate by 1% over the course of April and May.  

And house prices, to top it all off, could fall by as much as 10% this year.  

Sharon Zollner, ANZ's chief economist, joined Andrew Dickens. 

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