ANZ Tips November Rate Hike as Inflation Data Surprises

The Reserve Bank of Australia (RBA) may raise interest rates for the first time in months after July's inflation figures came in stronger than expected, according to ANZ.

ANZ now expects the RBA to lift the cash rate by 25 basis points in November, up from its previous forecast of no change. The bank cited the strong inflation data as a key factor in its decision.

The Australian Bureau of Statistics (ABS) reported that headline consumer price index (CPI) inflation eased to 3.5 per cent in the 12 months to July, but trimmed mean inflation, the RBA's preferred gauge, remained unchanged at 3.6 per cent annually.

While some banks, such as Westpac, remain confident that the RBA will hold rates steady, others are taking a more cautious approach. NAB has placed its rate forecast under review, citing 'hot' inflation data, and CBA has reduced confidence in its earlier prediction of no further rate hikes.