Australian Banks Anticipate Rate Hike Amid Rising Inflation Expectations

Banks in Australia have started to act on their revised rate forecasts as the Reserve Bank edges closer to its next cash rate decision.

The RBA's next meeting is expected to bring a rate hike, with most banks forecasting a 0.25-percentage-point increase.

National Australia Bank and Macquarie are predicting a rate hike as early as September, while Australia New Zealand Banking Group (ANZ), Westpac, and the Commonwealth Bank of Australia are flagging November as the likely time for a rate hike.

ASX market expectations put the chance of a cash rate increase to 4.6 per cent in September at 82 per cent.