ANZ Expects RBA Rate Hike in November Amid Higher Inflation

The Reserve Bank of Australia (RBA) is expected to raise interest rates in November due to higher-than-expected inflation, according to ANZ's revised forecast. The bank now predicts a 25 basis point hike to 4.60 per cent.

ANZ cited the strong July inflation print as a key factor in its decision, with the Australian Bureau of Statistics (ABS) reporting that headline consumer price index (CPI) inflation eased to 3.5 per cent from 3.8 per cent in June.

However, trimmed mean inflation, the RBA's preferred gauge, remained unchanged at 3.6 per cent annually. Housing was the largest contributor to annual inflation, rising 5 per cent, followed by food and non-alcoholic beverages, up 3.2 per cent, and recreation and culture, which rose 2.6 per cent.