Australian Banks Forecast Another Rate Hike Amid Rising Inflation Fears

The Reserve Bank of Australia's (RBA) next policy meeting on September 29-30 may see another rate hike, according to forecasts from three major banks.

The Commonwealth Bank of Australia and the National Australia Bank have joined ANZ in predicting a rate increase this year, following a hot inflation print that reignited fears of elevated price pressures.

NAB even went so far as to forecast an imminent rise from the RBA at its next policy meeting, arguing that the risk is biased towards another hike in November if economic activity stays resilient.

The July inflation data has seen markets now see a 50% chance of the RBA hiking interest rates to 4.6% in September, up sharply from just 17% before the inflation data.