ANZ Swings from Rate Cut to Hike as RBA Faces Inflation Surprise

The Reserve Bank of Australia's (RBA) next move is now uncertain after ANZ revised its cash rate forecast following higher-than-expected inflation data. The bank now predicts a 0.25 percentage point increase in November, a stark contrast to the previous expectation of a rate cut.

NAB has also confirmed it is reviewing its own forecast in light of the same figures. All four major banks had previously expected the RBA's next move to be a rate cut, not before 2027.

According to analysis by Canstar.com.au, a November hike of 0.25 percentage points would add approximately $91 to the monthly repayment on a $600,000 loan with 25 years remaining. This would result in a cumulative monthly increase of $363 across four rate rises this year.