Australian Banks Predict Another Rate Hike Amid Rising Inflation Fears
The Reserve Bank of Australia (RBA) may hike interest rates again this year, according to three major Australian banks.
Citing a hot inflation print in July, the Commonwealth Bank of Australia (CBA), National Australia Bank (NAB), and ANZ have all forecast another rate increase. CBA and ANZ predict a rate rise in November, while NAB expects an imminent hike at the RBA's next policy meeting on September 29-30.
NAB believes that economic activity staying resilient could lead to an additional rate hike in November if not sooner. The bank's head of Australian economics, Belinda Allen, stated that recent RBA communications suggest a cash rate increase due to the upside surprise in the inflation data.
The RBA held interest rates steady at 4.35% this month for a second consecutive meeting after three rate hikes this year aimed at taming inflation. Markets now see a 50% chance of a rate hike to 4.6% in September, up from just 17% before the inflation data.