Australian Banks Predict Another Interest Rate Hike This Year

The Reserve Bank of Australia (RBA) may raise interest rates again this year after three major banks forecasted another hike. The Commonwealth Bank of Australia, National Australia Bank, and ANZ all predict a rate increase in November following the release of hot inflation data.

NAB was the most aggressive in its prediction, saying there is a risk of an additional hike in November if economic activity stays resilient. CBA and ANZ also forecasted a rate rise in November after the July inflation data, while Westpac has yet to change its view on rates being on hold.

The RBA held interest rates steady at 4.35% this month for a second consecutive meeting, but markets now see a 50% chance that the RBA would hike interest rates to 4.6% in September, up sharply from just 17% before the inflation data.